Canada: Housing prices rebound in November
December 18, 2019
House prices increased 0.16% on a month-on-month non-seasonally-adjusted basis in November, according to the Teranet-National Bank Composite House Price Index, contrasting October’s 0.05% decrease. In November, prices in 8 of the 11 markets surveyed rose over the month prior. Year-on-year, house prices were up 1.4%, higher than October’s 1.0% uptick, but still subdued compared to historical standards.
In month-on-month terms, prices in Québec City, Vancouver and Hamilton registered the fastest increases in November, while prices in Toronto—which accounts for over one-third of the 11-city composite index—also rose. In contrast, prices in Halifax posted the strongest decline.
Going forward, elevated household debt levels and affordability issues—in key housing markets—will likely continue to keep house prices subdued by historical standards. However, tapering mortgage rates and still-solid existing home sales growth should continue to keep housing prices rising modestly.
Author: Steven Burke, Economist