Latest HPI report shows cooling markets across Canada

by Olivia D'Orazio12 Mar 2015
February marked the fourth straight deceleration of the country’s housing price index, an early sign of cooling housing markets across the country, despite a 4.4 per cent increase over the same period last year.
 
“There were 12-month gains well above the countrywide average in Hamilton, Toronto, Vancouver and Calgary, gains close to the average in Edmonton and Victoria, and a small gain in Halifax,” Teranet-National Bank wrote in its latest report. “Prices in Quebec City were flat from a year earlier. Prices were down from a year earlier in Winnipeg, Ottawa-Gatineau and Montreal.”
 
The February housing price index (HPI), which measures the change in price for resale single-family homes, rose 7.3 per cent in Toronto over the year, 5.7 per cent in Vancouver and eight per cent in Hamilton.
 
Surprisingly, though, Calgary also posted a 5.6 per cent year-over-year rise in HPI last month, likely a result of the Bank of Canada’s decision to lower the overnight rate in January – a move it hoped would prop up the market in Calgary, which many thought would falter in light of sliding oil values.
 
Compared to December, however, Calgary’s HPI was down 0.3 per cent, marking its fourth straight decline.
 
That decline, compounded by month-over-month decreases of 0.1 per cent in Toronto, 0.8 per cent in Edmonton, 2.1 per cent in Ottawa-Gatineau, and one per cent in Winnipeg, pulled down the national HPI, though it still managed to rise 0.1 per cent over January.
 
Vancouver, Victoria and Hamilton posted a 1.5 per cent, a 0.5 per cent and a 0.3 per cent month-over-month increase, respectively. Still, the modest month-over-month growth in just three cities further points to cooling markets across the country.
 
“However, prices rose in only three of the 11 metropolitan markets surveyed, even fewer than the five markets that showed gains in January,” Teranet-National Bank said. “In some markets there have clearly been corrections in progress.
 
“The monthly retreat in Calgary was the fourth in a row, for a cumulative decline of 2.3 per cent. In Winnipeg it was the fourth [decline] in five months, for a cumulative decline three per cent. East of Toronto the corrections have tended to be larger.”
 

COMMENTS

  • by E W Scharf 3/12/2015 11:15:55 AM

    Well..we just went through the coldest February in history...housing inventory is down in most markets....you cant sell houses that aren't on the market...and houses are selling faster for more money than the same time last year..in the market I am in..Kitchener Waterloo....so I think cooling market is a misread of the actual market...We have multiple offers on listings and prices aren't going down so I am not sure what the Housing Price Index is showing...think the patient is well and the Doctor needs and attitude adjustment...

  • by 3/12/2015 11:17:53 AM

    I am just wondering why Real Estate Professional, never mentions any city in Nova Scotia or any Maritime Provinces? Probably because we are smaLL COMPARED TO Quebec, Ontario and Western Provinces??????? Thank you

  • by Ernie G. 3/12/2015 11:39:21 AM

    Year over year numbers dont mean much if the cooling off started 3 to 6 months ago. They are deceptive and may lead to a false sense of security. What would be interesting to look at is what has been happening since January of this year.

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