Canada: Growth in housing prices slows for fourth consecutive month in October
November 15, 2016
The Teranet-National Bank National Composite House Price index rose 0.3% in October from the previous month, which followed the 0.8% increase in September. October’s increase was the lowest in nine months but the index itself continues to hit record-breaking highs—October’s reading of 198.4 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 October. Housing prices in Toronto recorded a month-on-month increase of 1.2%, while prices in Vancouver decreased 0.6% month-on-month. Cities in Alberta continued to struggle after the province-wide slowdown associated with the Fort McMurray fires and the resulting collapse in investment in oil-extraction operations. Prices in Calgary increased 0.5% while they remained flat in Edmonton. On an annual basis, house prices increased to a six-year high of 11.8% in October, which was up from the 11.7% increase recorded in September.
Author: Luis Lopez Vivas, Economist