Home prices across Canada have shown some gains but a measure of price movement shows stabilization rather than real increases.
The Teranet-National Bank Home Price Index was up 0.9% in June compared to the previous month and is 2.87% above June 2017, however that was the smallest annual rise since 2013.
“June’s rise in the index, impressive at first sight, was in fact weak for
this time of the year. Indeed, if the Index were purged from seasonal patterns, it would have been about flat over the last three months,” the report says.
The HPI tracks home prices against a base level of 100 in June 2005 and currently sits at 223.82, meaning a rise of more than 123% over the past 13 years.
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The HPI surveys 11 markets and 10 of them showed price increases in June compared to May.
Ottawa-Gatineau (2.0%), Hamilton (1.8%), Edmonton (1.5%), Victoria (1.3%), Toronto (1.2%) and Halifax (1.0%) posted the largest increases, although the Toronto gain was the smallest for June in 10 years and the Vancouver rise was the fourth smallest for June since 2001.
The condo segment is far outpacing gains for other home types in Toronto and Vancouver on an annualized basis.
“Condo prices have risen at a fast clip since the beginning of the year in Toronto and Vancouver (after seasonal adjustment, 7.8% and 16.3% annualized respectively), while prices for other types of dwellings held their ground. The resiliency of prices for the latter category of dwellings
is indeed reassuring in view of higher interest rates and stricter mortgage qualification rules (B20) that dampen demand for the most expensive categories of dwellings,” the report says.
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