The Toronto skyline in Canada

Canada Housing May 2022

Canada: House price growth remains elevated in May, but slowdown likely ahead

According to the Teranet-National Bank Composite House Price Index, house prices increased 2.3% month-on-month in May. The print followed April’s 2.7% rise, and was driven by broad-based price gains across the country. Meanwhile, house prices increased 18.3% annually in May, down from April’s 18.8% increase.

The strong housing market over the last year has been driven on one hand by strong demand, thanks to population growth, a healthy labor market and changes to housing preferences due to the pandemic, and on the other by restricted housing supply. However, monetary tightening by the Central Bank and reduced affordability should lead the housing market to cool later this year. Indeed, this slowdown is already evident in statistics gathered from different sources: In May, home sales fell 8.6% on a month-over-month basis according to the Canadian Real Estate Association (CREA). Moreover, the CREA’s house price index showed a decline in May.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest