Canada: Growth in housing prices slows for fourth consecutive month in September
October 11, 2016
The Teranet-National Bank National Composite House Price index rose 0.7% in September from the previous month, which followed the 1.5% increase in August. The index continues to hit record-breaking highs—September’s reading of 197.7 was the highest on record.
Regarding regional developments, Toronto and Vancouver, which together account for 54.1% of the index, recorded month-on-month increases of 34.6% and 19.5%, respectively. Cities in Alberta are finally recovering from the province-wide slowdown associated with the Fort McMurray fires and the resulting collapse in investment in oil-extraction operations. Prices in Calgary increased 8.3% while they rose 5.2% in Edmonton. On an annual basis, house prices increased to a six-year high of 11.6% in September, which was up from the 11.4% increase recorded in August.
Author: Luis Lopez Vivas, Economist