Canada: House prices tick down in October
November 15, 2018
House prices inched down 0.4% on a monthly basis in October, according to the Teranet-National Bank National Composite House Price Index (September: +0.0% month-on-month s.a.). October’s reading marked the first month-on-month contraction in house prices since February.
In October, 10 of the 11 cities included in the composite index posted lower prices from a month earlier. In Toronto, which accounts for over a third of the 11-city composite index, prices fell 0.2% month-on-month. Meanwhile, prices in Vancouver fell 0.8% compared to the previous month. Montreal posted its seventh consecutive monthly rise in house prices.
In annual terms, housing prices climbed 2.8% in October, accelerating from the 2.1% increase in September. Despite the uptick, new mortgage guidelines have been keeping a lid on price gains. Similarly, higher interest rates are expected to continue taming market demand over the coming quarters.
Author: Steven Burke, Economist