Prices were up 3.4% in October compared to last year, but down from the previous month as prices continued to fall across the country. In 13 years of data collection, it is only the third time prices have dipped in October.
Not surprisingly, the slowdown is being attributed to the revised mortgage lending regulations.
“Today’s report provides additional evidence that macro-prudential regulations are helping to slow housing demand and is consistent with last week’s existing-home sales report,” said Mazen Issa, Canada Macro Strategist at TD Securities. “With tighter mortgage regulations proving to be effective thus far, the Bank of Canada will have slightly more breathing room to stay on the sidelines and observe how key global events unfold in the very near-term.”
Seven of the 11 markets surveyed saw decreases, a trend expected to continue as many areas are in three or more months of consecutive decline.
But the report wasn’t all doom and gloom: selling prices rose – albeit slightly- in three major markets. Prices increased by 0.1 percent in Vancouver, 0.3 per cent in Edmonton and 0.4 per cent in Hamilton. Winnipeg was the only market that reported flat prices, month over month.
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