Canada: Growth in housing prices accelerates in June
July 13, 2016
The Teranet-National Bank National Composite House Price index grew 2.3% in June over the previous month, following the 1.8% increase observed in May. The rise was the highest since July 2006.
Regarding regional developments, Toronto and Vancouver, which together account for 54.1% of the index, recorded month-on-month increases of 3.3% and 2.6%, respectively. The cities that recorded the strongest gains were Victoria, which increased 4.4% and Halifax, which rose 3.7%. Cities in Alberta are suffering from the province-wide slowdown associated with the collapse in investment in oil extraction operations. Prices in Calgary barely increased, climbing only 0.2% while prices in Edmonton fell 0.3%. On an annual basis, house prices rose 10.0% in June, which was up from the 9.0% increase recorded in May and marked a nearly six-year high.
Author: Robert Hill, Economist