Canada Mortgage and Housing Corporation today released a new study — Examining Escalating House Prices in Large Canadian Metropolitan Centres. The analysis shows that strong economic and population growth, together with low mortgage rates, have been important drivers of house price growth in Canada. As well, it also shows that the supply response has been weaker in Toronto and Vancouver, than in other Canadian metropolitan areas.
The report looked at data from Toronto, Vancouver, Montreal, Calgary and Edmonton from 2010 to 2016. These cities show marked differences in the growth of their prices. While Toronto and Vancouver showed large and persistent increases in prices, there was only modest price growth in Montréal. Despite softer local economic conditions, home prices rose slightly in oil-dependent Calgary and Edmonton.