The chart above shows the detached housing prices for Vancouver, Calgary, Edmonton, Toronto, Ottawa* and Montréal (*Ottawa are combined residential). In March 2012 urban flippers continued reeling in accommodating buyers who jumped at asking prices on detached dwellings pushing them to new highs in Vancouver and Ottawa. Toronto remained aloft just shy of the February record with energetic double digit M/M sales. Month over month sales were strong in every city covered and only year over year sales showed up double digit red in the west (Scorecard). Short term excitement is the headline. Calgary and Edmonton held their gains from last month but their peak prices happened years ago in the Spring and Summer of 2007 (Plunge-O-Meter).
The party is being refreshed with mortgage rate inducement and the 10yr less the 2yr spread continues to narrow (34th month since May 2009). The last time this happened, the 10yr less the 2yr spread narrowed from Spring 2004 to Summer 2007 (similar duration) which set up the 2007-2009 crash. It's an interesting comparison, buckle up.