Canada: Housing market continues to deflate in January
February 13, 2019
House prices edged down 0.05% on a seasonally-adjusted monthly basis in January, according to the Teranet-National Bank National Composite House Price Index (December: -0.30% month-on-month). January’s print marked the fourth consecutive monthly decline in the index, and was driven by falls in 6 of the 11 markets surveyed. In annual terms, housing prices climbed 2.2% in January, down from December’s 2.5% increase. The softer housing market is likely tied to higher interest rates dampening consumer demand.
Prices in Edmonton and Calgary recorded the sharpest month-on-month drops in January, while prices in Vancouver also declined. In contrast, prices in Toronto—which accounts for over a third of the 11-city composite index—picked up, while prices in Montreal and Quebec City reached all-time highs.
Author: Steven Burke, Economist