The fact that the Home Price Index has obscured the extreme and unusual volatility in average detached home prices may itself be a problem. Few home buyers or sellers are likely aware that it is even occurring. It certainly hasn't been widely reported. Since early 2011, average house prices have changed direction by a factor of 10 per cent or more five times. Such volatility had never happened before, and the swings are getting wilder.
Since Canada's government announced that it was axing the Immigrant Investor Program, there has been plenty of speculation about what that means for the second-most unaffordable property market in the world, where a dumpy bungalow can have almost triple the asking price as a castle on the other side of the country. The average price of a detached home in greater Vancouver? $1,259,775.