The average price of a home shot up more steeply in Hamilton than anywhere else in the country over the past year, according to new numbers from the Canadian Real Estate Association (CREA).
Numbers released Tuesday from CREA show that when comparing this August to August 2014, the average price of a home in Hamilton rose 16.4 per cent, which is the largest such increase in the country. But the report cautions that average values can be skewed by changes in the mix of houses being sold (i.e. more or fewer high end homes) — which was especially true this year, when two multi-million homes were sold during August.
This graph breaks down the price differences by city:
"In Ontario, the ongoing shortage of single-family homes for sale in and around the GTA continues to drive very strong price gains," CREA said in a statement. "Record levels of activity in the province would likely be higher were it not for a shortage of low-rise homes coming onto the market."
The average price of a Canadian home sold in August hit $433,367, which is an increase of 8.7 per cent in the past year – just over half of the rise seen in Hamilton over the same period.
While the CREA numbers point to huge gains, the Realtors Association of Hamilton-Burlington (RAHB) said in a recent news release that the increase is a "bit misleading."
According to the RAHB, two "very high end" properties in Oakville were listed by local realtors and sold for around $10 million — and that can skew the statistics.
CREA said that beyond prices, more homes were sold during the month, too. Canadian sales rose by four per cent compared to August last year.
August is typically a busy month for home sales. The number last month marked the third-highest sales figure on record, after 2005 and 2007.
Toronto and Vancouver continue to skew the national average higher, the association says.
"Prices continue to rise in Ontario and British Columbia, where listings are either in short supply or heading in that direction," says Gregory Klump, CREA's chief economist.