Canadian real estate prices are moving higher, but not all markets are equal. Statistics Canada (Stat Can) updated the Residential property price index (RPPI), showing prices increased in six major markets. Breaking those numbers down, the biggest lift to the index is condo apartment resales. Meanwhile, new condo construction is seeing prices fall.

Residential Property Price Index (RPPI)

The residential property price index (RPPI) is Stat Can’s quarterly price analysis. The index tracks 6 significant markets – Montreal, Ottawa, Toronto, Calgary, Vancouver, and Victoria. Typical stuff when you gloss over it, but there’s one important distinction – it includes resales and new construction. By using a consistent methodology across construction types, we can finally compare how both markets are doing.

Canadian Real Estate Prices Are Rising

Overall, the RPPI printed higher prices across markets. The aggregate of residential prices increased 0.6% in Q4 2019, when compared to the previous quarter. Prices are up 1.6% for the quarter, when compared to the same time last year. Like other price indexes, it’s showing bigger growth in the Eastern half of Canada, and weakness in Western Canada. Ottawa is leading higher overall, and Vancouver is leading lower.

Canadian Home Prices Q4 2019

The annual change in home prices (all types) for selected Canadian real estate markets, seperated by construction.

Source: Stat Can, Better Dwelling.

Breaking the market into new resales and new builds, we can see this increase is entirely due to resales. Resale homes increased 0.86% in the same quarter, and are now up 2.03% from last year. New homes fell 0.19% in Q4 2019, and are now down 0.77% from last year. The increase is being largely propelled by rising condo resale prices.

Canadian Resale House Prices Are Rising, While New Construction Falls

Resale house prices are rising, while new house prices have been weak. Overall, house prices in the six cities tracked increased 0.49% in Q4 2019, and are up 0.69% compared to a year before. Resale prices increased 0.68% in the quarter, and are up 1.38% from a year before. New homes were virtually flat in the quarter, and are down 0.79% from a year before. The index increase is entirely boosted by rising resale prices.

Canadian House Prices Q4 2019

The annual change in house prices for selected Canadian real estate markets, seperated by construction.

Source: SC, Better Dwelling.

Canadian Resale Condo Prices Are Soaring, While New Construction Drops

Condo prices are rising faster than house prices, but are seeing the same issues with new builds. Overall, condo prices were up 0.54% in Q4 2019, and are up 1.91% from a year before. Resale homes were up 1.4% on the quarter, and a whopping 3.68% from a year before. New homes weren’t as lucky, with prices falling 0.84% in the quarter, bringing them down 0.93% from a year before. Condo prices are rising faster than the general market, but new builds are falling faster.

Canadian Condo Prices Q4 2019

The annual change in condo prices for selected Canadian real estate markets, seperated by construction.

Source: SC, Better Dwelling.

Canadian real estate prices are still rising, with condo apartments driving the market. Only condo resales, however. Prices for new construction are falling, which is actually weighing the index down. It also appears Vancouver, the most expensive and one of the largest condo markets, is largely responsible for the decline.

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