Canada: Growth in housing prices slows in July
August 12, 2016
The Teranet-National Bank National Composite House Price index grew 2.0% in July over the previous month, following the 2.3% increase observed in June. The index continues to hit record-breaking highs—July’s reading 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 3.1% and 2.3%, respectively. The cities that recorded the strongest gains were Victoria, for which the index increased 3.8%, and Toronto. Cities in Alberta are suffering from the province-wide slowdown associated with the collapse in investment in oil extraction operations. Prices in Calgary decreased a slight 0.1% while prices were unchanged in Edmonton. On an annual basis, house prices rose to a six-year high of 10.9% in July, which was up from the 10.0% increase recorded in June.
Author: Robert Hill, Economist