National home price index posts another below-average gain

A leading measure of Canadian home prices posted a gain in August but reflected the weakness in some key markets.

The Teranet-National Bank National Composite House Price Index was up 0.4% compared to the previous month, continuing the trend of gains below the 21-year average for each month in the last three (which is 0.7% for August).

However, had the index been seasonally adjusted, it would have seen a slight increase, reversing a trend seen in the previous three months and suggesting an end to an underlying downtrend after correction.

The overall index reading of 227.51 means a 0.6% gain year-over-year, which is small but significant as the first acceleration in 9 months.

Vancouver posted a 13th month without an increase in its HPI with a 0.8% drop in August. Edmonton (−0.1%) and Quebec City (−0.4%) also posted declines, the latter reversing after three monthly gains.

On a positive note, home sales in August were up 55% from March in Vancouver, where market conditions went from “favorable to buyers” to “balanced” (right chart). Over that period, home sales rose 19% in Calgary and 12% in Edmonton. These improvements, if sustained, will sooner or later help limit home-price deflation in this region.

There were HPI gains for Victoria 0.2%, Calgary 0.6%, Hamilton 0.7%, Winnipeg 0.7%, Toronto 0.8%, Montreal 1.1%, Ottawa-Gatineau 1.7% and Halifax 1.8%.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Do you invest in commercial properties?