Teranet’s latest report was released today, in which it was revealed that the Canadian house price index had decreased by 0.1% in February.
The Teranet–National Bank National Composite House Price IndexTM ticked down 0.1% since January, interrupting an upward trend in January 2018 and December 2017.
This is the first decline to be recorded in the month of February since 2013.
The following cities saw decreasing indexes:
- Toronto (-0.1%)
- Montreal (-0.3%)
- Ottawa-Gatineau (-0.7%)
- Edmonton (-0.8%)
- Calgary (-0.8%)
- Winnipeg (-1.0)
- Quebec City (-1.5%)
The following cities, exceptionally, saw their indexes increase:
- Vancouver (+0.4%)
- Hamilton (+0.2%)
- Halifax (+0.8%)
Victoria was the only city to experience a flat index, with no increases or decreases.
In Vancouver, this was the 12th rise in 14 months, bringing the index up to a new record for the city. On the other hand, the unsmoothed (raw) index decreased by 1.3% in February, coinciding with new mortgage regulations put in place to cool the market.
In Toronto, the raw index decreased after a stretch of three consecutive increases. Observers have noted a decrease in demand partly due to tougher conditions for obtaining a mortgage.
In Montreal, this retreat in the house price index broke a 14 month-long, uninterrupted upward trend.
“This is not a concern, since the Greater Montréal Real Estate Board reported the strongest sales in six years for the first two months of a year.”
When it comes to year-over-year increases, the composite index in February was up 7.5% compared to February 2017. This is the smallest 12-month rise since March 2016.
The index for the February 12-month rise was led by:
- Vancouver (15.8%)
- Victoria (12.4%) and
- Hamilton (8.4%)
Followed by a moderate increase in:
- Toronto (6.2%)
- Halifax (5.3%)
- Montreal (5.0%)
- Ottawa-Gatineau (3.7%)
- Winnipeg (3.0%) and
- Calgary (0.6%)
Declines were noted in the following cities:
- Edmonton (−0.3%)
- and Quebec City (−2.3%)
Of the 14 markets excluded from the national composite index, 7 saw a monthly rise in index between January and February, and all 14 saw increases year over year. Rises ranged from 1.2% in Sudbury to 23.9% in Abbotsford-Mission, B.C.
About Teranet-National Bank National Composite House Price Index™
The data used to calculate the index on a month to month basis is pulled from closed sales registered in the provincial land registry, which include both Centris and private/FSBO sales. The home price trend is illustrated using moving averages over the last three months of raw indexes, from the published indexes of the 11 metropolitan markets entering into the Teranet–National Bank Composite House Price Index.™ This procedure smooths out month-to-month fluctuations. For further information about the methodology, please visit www.housepriceindex.ca
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