Canada: Growth in housing prices inches up in December
January 13, 2017
The Teranet-National Bank National Composite House Price index rose 0.3% in December from the previous month, which followed the 0.2% increase in November. With December’s increase, the price index continues to hit record-breaking highs—December’s reading of 199.4 was the highest on record.
Regarding regional developments, the housing markets of Toronto and Vancouver, which together account for 54.1% of the index, showed signs of cooling in December. Housing prices in Toronto recorded a weak month-on-month increase of 1.2%, while prices in Vancouver declined by a third consecutive month. Cities in Alberta seem to be improving after the province-wide slowdown that followed the McMurray fires and the resulting collapse in investment in oil-extraction operations. Prices in Calgary increased 0.6%, while they edged up 0.1% in Edmonton. On an annual basis, house prices increased to an over six-year high of 12.3% in December, which was up from the 11.9% increase recorded in November.
Author: Luis Lopez Vivas, Economist