Photo: Wikimedia Commons
Canadian home prices mirrored those in the U.S. as they surged from 2001 to 2008, then plunged during the global financial crisis. Since 2009, however, they have once again been on a tear as U.S. home price have remained subdued.The person most responsible for the movement in Canadian home prices is probably Mark Carney, the now former head of the Bank Of Canada who was recently poached by the Bank of England.
Carney has been praised for embarking on aggressive easy monetary policy in his effort to keep Canada from sinking with the rest of the global economy.
However, some are now concerned that his policies are reinflating a massive housing bubble. Capital Economics warned that Canadian home prices will fall 25 per cent from here, and Robert Shiller warned that Canada looked like the slow-motion version of the U.S.housing bust.
What follows is a review of how the Canadian housing market has evolved since 2001. It should be noted that Carney took over the Bank of Canada in 2007.
2001: 2016 Nita Lane in Whistler, B.C. sells for a cool $10 million -- setting a Canadian record for the highest price ever paid for a residential home.
Q3 2006: Home prices climbed over 5 per cent on the quarter, the highest rate we've seen in the past eight years
2006: Listed for $8 million in 2001, 7425 Treetop Lane in Whistler declined in value for five years and sold for $6.3 million -- an outlier for the otherwise booming housing market.
2008: In the wake of the global financial crisis, national average home prices began to tumble and then spiked higher mid-2009
2008: 3330 Radcliffe Avenue, located in West Vancouver, sold for $28.8 million after the crash to Rexhall Pharmacies and Edmonton Oilers owner Darryl Katz. Before that, it sold for $17 million in 2004 and again for $30 million in late 2007 right before the market turned.
2009: The most expensive home in Toronto, at 32 High Point Road, sold for $11.8 million -- $2 million below the asking price.
2010: Home prices ranged from 4.7 to 11.3 times annual income. In the two decades before 2000 house prices were 3 to 4 times annual median income.
MAY 2012: Renowned Canadian singer Celine Dion listed her mansion, on the private island Ile Gagnon, Quebec, for just under $30 million in May, which makes it the most expensive residential property for sale in the province.