The 2009 Coldwell Banker Home Price Comparison Index (HPCI) released today found that Vancouver, BC placed tenth on the North American most expensive list at almost 1.3 million dollars CDN, this also tops the 35 Canadian markets studied. PEI was narrowly edged out of the North American top ten most affordable markets.

Follow up:

Internationally, Singapore, $1.9 million US dollars, was the most expensive market for the same type of home compared with Salinas, Ecuador, $69,375 US dollars, was the most affordable studied international market.

Differing from most housing reports which compare median prices, the annual Coldwell Banker HPCI, provides an apples-to-apples comparison of similar 2,200 square foot, four-bedroom, two-and-a-half bath homes in Canada, the U.S. and Puerto Rico, and a sampling of 56 countries/territories outside of North America where Coldwell Banker Real Estate has a presence.

"While Canadian home prices have been on the rise again following a brief market downturn, today's historically low interest rates have kept the dream of homeownership within reach for most of today's homebuyers," says John Geha, president of Coldwell Banker Canada Operations ULC. "It is particularly interesting to compare the affordability levels now seen across North America and other global centers. Compared to many major markets throughout the world, Canadian real estate looks like a bargain."

The study's 4-bedroom, two-and-a-half bath home is what would typically be sought for middle-management corporate transferees. "It's what we call the 'aspirational home' and is usually purchased by move up buyers experiencing lifestyle changes," explains Geha. "Despite record-breaking prices in many of Canada's major markets, these homes are selling, as buyers take advantage of today's historically low interest rates. These move-up buyers have been a critical component in our resurgent real estate market, and will continue to play a major role in Canada's recovering economy."

A "Snapshot" of Home Affordability

Offering a "snapshot" of affordability across North America, the Coldwell Banker HPCI evaluates average home values for select 2,200 square foot single-family dwellings with four bedrooms, two-and-one-half baths in 345 markets across Canada and the United States.

Through the comprehensive HPCI section on hpci.coldwellbanker.com, prospective homebuyers and sellers can calculate what similar homes may be worth in other areas and gather preliminary intelligence about the affordability of housing from one market to another. For purposes of comparison, all prices on the international study are expressed in U.S. dollars.

2009 Coldwell Banker HPCI - Highlights and Top Market Lists

• "Aspirational Home" Still in Reach as Canadian Prices Reach Record Levels: Canada's brief real estate downturn is over, with record prices now seen throughout the resurgent market. But historically low interest rates still continue to fuel the demand for move-up homes. ­­
  • Vancouver, BC leads the hot-again west coast at over $1.17 million US ($1.26 million CDN) dollars for the studied home, nearly double that of nearby Burnaby, BC at $611,243US ($657,250 CDN).
  • Boomtown Fort McMurray at $593,340 US ($638,000 CDN) surpasses both Calgary at $488,831 US ($525,525 CDN) and Edmonton at $401,993 ($432,250 CDN) as Alberta's most expensive market.
  • East meets West, as Winnipeg, MB with $363,042 US ($390,368 CDN), Saskatoon, SK at $355,237 ($381,975 CDN); Whitehorse, YT $341,775 US ($367,500 CDN) and St. John's, NF $324,338 US ($348,750 CDN) all post 'aspirational home' prices in the mid to upper $300,000s
  • Canada's largest city, Toronto, Ontario comes in at $766,643 US ($824,347 CDN)
  • Charlottetown PEI remains the country's most affordable market, priced at $147,560 US ($158,667 CDN). Brantford, ON at $222,968 US ($239,750 CDN), Moncton, NB at $256,843 ($276,175 CDN), and Halifax, NS at $257,891 US ($277,302 CDN) were some of the other more affordable Canadian markets in the study.

• Low Cost to Home Ownership in American Midwest: Including Charlottetown, PEI there are 85 North American markets in which the sample home price averages under $200,000 US. The most affordable homes in North America are centered primarily in the American Midwest. A 5% down payment for a home in this price range could amount to less than $10,000.

• Luxury Living: La Jolla, California heads the list as the most expensive real estate market on the continent, beating out its California neighbour Beverly Hills, where the average home costs $1,981,750 US. Greenwich, Connecticut, with an average price of $1,519,250 US for the studied home placed as the most expensive market on the East coast. Canada's top price leader, Vancouver BC at $1,174,241 ($1,262,625 CDN) was the only Canadian market to exceed the million dollar mark. In total, 12 North American markets exceeded the $1 million US average price for the surveyed home. Note: Manhattan in New York City was not included in the study because of the lack of comparable single-family homes.

• Most Expensive Internationally: The most expensive market outside North America is Singapore, where an HPCI subject home averages $1.9 million US dollars, more than $630,000 higher than Vancouver. Singapore was followed by Milan and Florence, respectively, each with prices surpassing $1.6 million US for the subject home. Coldwell Banker Real Estate charts a total of 28 countries outside of Canada and the U.S.

Compare home prices in various cities in Canada and the United States at the Coldwell Banker Home Price Comparison Index webpage.