COMPARE VANCOUVER & TORONTO HOUSING of Single Family Detached, Town House and Condo Prices and Total Residential Listings and Sales and their Absorption Rates
SEE ALSO CHART COMPARISONS OF EARNINGS & COMMODIFIED HOUSING VALUES FOR
VANCOUVER, CALGARY and TORONTO
VANCOUVER, CALGARY and TORONTO
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The chart above shows the HPI® prices for Vancouver and average prices for Toronto (solid plot lines) as well as the Monthly Absorption Rate (MAR = Sales/Listings as dotted plot lines).
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At the old Vancouver price peak in April 2012 before Torontonians joined the party, Vancouver metro SFDs were 64% more expensive than Toronto comparables. In July 2016 at the peak of Vancouver SFD prices, they were 65% more expensive. By June 2017 the gap was closing quickly; it narrowed down to 33%. |
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The SFD price gap still remains wide at 34%. Strata prices are also more expensive in Vancouver; 14% more for town-houses and 6% more for condos.
In March 2017 the Monthly Absorption Rate based on total inventory and total residential sales hit a freaky 154% in Toronto vs Vancouver at 47%.
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In October 2019
HIGHER PRICES 34% more for a SFD in VAN 14% more for a Town House in VAN 6% more for a Condo in VAN 1.3 more Listings in TOR than VAN 3.0 x more Sales in TOR than VAN Monthly Absorption Rate TOR:VAN = 2.4 Ratio of SFD to Strata 1 VAN SFD = 1.8 VAN Town Houses 1 TOR SFD = 1.6 TOR Town Houses 1 VAN SFD = 2.2 VAN Condos 1 TOR SFD = 1.7 TOR Condos 10 Year SFD Inflation Rate: VAN = 88% and TOR = 100% Annual Precipitation VAN:TOR = 2:1 |
AUG 2019 Average Earnings
BC = $52,087 /yr up 27% since MAR 2009 ON = $55,254 /yr up 29% since MAR 2009 2016 Census Household Median Earnings VAN = $88,000/yr and TOR = $88,170/yr SEP 2019 Unemployment Rate Not Seasonally Adjusted (NSA) BC = 4.8% and VAN = 4.6% ON = 5.8% and TOR = 6.2% SEP 2019 Employment Rate (NSA) Charts BC = 62.8% and VAN = 64.6% ON = 61.9% and TOR = 63.5% Population 2016 Census Projection VAN = 2.46 mil or 1004 /Km2 TOR = 5.93 mil or 855 /Km2 Earners needed to buy an average SFD: VAN = 2.3 and TOR = 1.6 earners (based on 2016 StatsCan Census Median Household Income) |
Here is another attempt to visualize the distortions of the market where the fundamental requirement of a yield to attract sustainable investment in real estate has been replaced with the lure of capital gains.
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The "improvement" that sits on the land is a wasting asset. If serviced land is so valuable, shouldn't the ratio be 1 house equals at least 3 townhouses?
If the numbers don't make sense you can always rent. When MOI is low & MAR is high, developers and vendors have the edge.
If the numbers don't make sense you can always rent. When MOI is low & MAR is high, developers and vendors have the edge.
CLICK CHART TO ENLARGE
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IN THE LAST 10 YEARS SFD Prices are up: 88% in Vancouver 15% in Calgary 100% in Toronto WHILE Employment Earnings are up: 24% in British Columbia 24% in Alberta 28% in Ontario |
