Canada: Housing prices rebound in November
House prices increased 0.2% on a month-on-month non-seasonally-adjusted basis in November, according to the Teranet-National Bank Composite House Price Index, contrasting October’s 0.1% 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 Quebec 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—were virtually flat. In contrast, prices in Halifax and Winnipeg fell sharply.
Looking ahead, elevated household debt levels and affordability issues—in key housing markets—will likely continue to keep house prices subdued by historical standards. However, ultra-low mortgage rates and robust existing home sales growth should continue to keep housing prices rising modestly.