South Forest Hill Residences address.House prices in Canada are still on the rise. Canadian house prices began to recover from the downturn in the middle of last year, but their growth rate is not obvious and cannot be compared with that of the past.Please Visit: South Forest Hill Residences address to Get Your VVIP Registration Today!
From stringent new mortgage “stress tests” and taxes on foreign buyers to rising interest rates, these new headwinds in the Canadian housing market have not stopped house prices from resuming growth.
The latest Teranet/National Bank house price index shows that Canadian house prices have recovered from the downturn that began in the middle of last year and are now rising 2.9 per cent year-on-year.
House prices in 10 of the 11 cities measured by the index rose month-on-month in June, while prices in Winnipeg fell 1 per cent month-on-month.
“does this mean that the Canadian second-hand housing market is about to start a new bull market? No! ” Marc Pinsonneault, an economist at the National Bank, wrote in a report released in conjunction with the index on Thursday.
“at first glance, the rise in the index in June was impressive, but in fact the increase at this time of year is not as significant as it used to be.”
If seasonal differences are excluded from these data, it would be the third smallest year-on-year increase in house prices in June in the past 14 years, according to an analysis by Capital Economics.
In addition, not all markets have seen a recovery in house prices. The Toronto price index shows that prices there are still 2.8% lower than a year ago, while in nearby Hamilton, prices are down 0.4% from a year earlier.
On the other hand, Vancouver’s house price index has soared 13.3% over the past year, pushing up the national house price index.
“however, the market in Vancouver has taken a sharp turn for the worse,” Stephen Brown, senior Canadian economist at Capital Economics, wrote in a client note.
“despite a slight increase in June, the ratio of sales to new housing is close to its lowest level in five years, suggesting that year-on-year increases in house prices will disappear in the second half of 2018.”
Pinsonneault points out that price increases vary widely among different types of housing. Apartment prices in Toronto have risen 7.8% in a year, although overall prices in the market have fallen. In Vancouver, apartment prices rose 16.3% year-on-year.
Unlike the average sales price published by the Canadian Real Estate Association (CREA), the Teranet/National Bank house price index tracks repeated sales over a period of time, forming an one-to-one accurate price comparison.
The average house price in Canada was $496000, down 6.4 per cent from a year earlier, according to CREA data in June. But the decline was mainly due to a decline in sales of high-end homes, driving down average prices.
Comparable prices have risen by 1 per cent in the past year, according to CREA’s own one-to-one accurate house price index.
