Canada home prices rose in May

  6/20/2023 |   SHARE
Posted in Canadian Housing Market by Anthony (Tony) Barone | Back to Main Blog Page

Teranet-National Bank

Home prices rose between April and May across Canada’s big cities, according to Teranet-National Bank™ Composite House Price Index.

The report published Monday saw a 1.6 per cent price increase before seasonal adjustments.

It was also the first time in 11 months that the Index saw an uptick in home prices after adjusting for seasonal effects – going up 0.6 per cent after 10 consecutive monthly declines.

A news release said the turnaround has come due to a “rebound in the resale market over the past four months,” as well as record population growth, “which is accentuating the shortage of housing supply on the market.”

“There is no reason to believe that the shortage of properties on the market will be resolved any time soon,” the release said.

“However, the resumption of the monetary tightening cycle by the Bank of Canada in recent weeks and the expected slowdown in economic growth could moderate price growth later this year.”

Eight of 11 cities included in the index saw price increases. Toronto had the biggest rise with 1.6 per cent, followed by Winnipeg at 1.5 per cent and Victoria and Edmonton at 1.3 per cent.

Quebec City, Montreal, Hamilton and Calgary also saw increases.

Prices fell in Halifax by 2.6 per cent, Vancouver by 1.2 per cent and Ottawa-Gatineau by 0.3 per cent.

The index fell by 7.6 per cent from May 2022 to May 2023, which was a smaller annual contraction from the previous month.

Still, there were increases in three of the 11 cities making up the index in May, with prices rising in Calgary, Edmonton and Quebec City year-over-year.

Source: BNN Bloomberg

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