Plaza on yonge. The house price index rose 1% in August. The National Bank of Canada’s national home price composite index rose 1% in August, the third month in a row that the increase was lower than the previous month.
Toronto and Vancouver both rose by less than 1%.
The index rose 2.8 per cent nationwide in May and fell 2.7 per cent in June for the first time this year. The increase fell to 2.0% in July. This shows that although house prices across the country are still rising, the rise has slowed down from the first half of the year. However, until August this year, the real estate market in all 11 regions of the country recorded by the index experienced six consecutive months of growth, albeit at different rates.
The rise in house prices across the country in August was led by six of the 11 regional real estate markets. Ottawa-Gatino rose 2.1%, Hamilton 1.7%, Manchuria 2.1%, Quebec City 1.3%, Winnipeg 1.3%, and Victoria 1.3%. Khalifas’s increase is the same as that of the whole country, at 1%. Markets below national gains are Vancouver (0.8 per cent), Calgary (0.8 per cent), Toronto (0.7 per cent) and Edmonton (0.6 per cent).
The National Bank said the slowdown in house prices could be linked to a recent slowdown in national home sales reported by the Canadian Real Estate Association (Canadian Real Estate Association).
The national bank house price composite index is based on the price difference between the last two sales of the same house (called the sales mix). An analysis of the growth of the market sales mix across the country over the past 12 months found that there was no overall growth in all regions in August for the first time in the past 12 months. In addition, the trend of price growth assistance is expected to continue in the coming months, as the seasonally adjusted composite index is only 0.1 per cent higher than in July.