Canadian Housing Prices Continue to Climb
Despite some bumps recently in the economy, the housing market seems largely unaffected. According to the latest release of the Teranet-National Bank National Composite House Price Index report, Canadian Home Prices went up by 1.7% in June.
The index jumped to an all-time high in June, building on gains seen in the previous month- which was the biggest month-to-month gain since August 2009.
From a year ago, the index is up by 4.5%. This latest release marks the third month in a row that the index has risen over 1%, as well as the seventh consecutive rise.
In all six major metropolitan markets surveyed prices were up across the board, led by Toronto with a 2.0% increase. Vancouver and Ottawa registered in at +1.7%, while Calgary posted a 1.6% rise, Montreal +1.1% and Halifax +1.0%
This signals the ninth rise in a row for booming Vancouver.
The report says, “The 12-month gain of the composite index in June was 4.5%, barely more than the 4.4% of April and May. It may seem surprising that 12-month inflation has not been accelerating in step with the recent pace of monthly increases. The reason is that in May and June 2010 the composite index was gaining more than 1% monthly.”
“In June the largest 12-month rise was 7.2% in Vancouver, followed by 5.9% in Montreal, 4.6% in Ottawa, 4.4% in Halifax and 4.2% in Toronto. Vancouver stands out with three consecutive months of accelerating 12-month inflation. Though Montreal’s 12-month inflation was the second highest of the six markets, it decelerated in June for a third straight month. Twelve-month inflation decelerated for a sixth consecutive month in Halifax. Calgary prices were down 2.7% from a year earlier, for a ninth consecutive month of 12-month deflation.”
“In July, according to seasonally adjusted data from the Canadian Real Estate Association, market conditions were balanced in the country as a whole while appearing tight in Toronto.”