Report: Home prices start to lag

by Jennifer Paterson13 May 2015
While home prices across the country did increase for the fourth consecutive month in April, the 0.2 per cent rise is one of the smallest April advances in nearly 20 years, according to new figures from Teranet-National Bank.

In its latest Housing Price Index, the agency said, excluding the recession year 2009, the monthly change is tied with that of April 2013 for the smallest April increase in 17 years of index data.

The slightness of the gain came from the indexes for Vancouver and Toronto, which were both flat from the month before; Vancouver saw a 4.8 per cent increase compared to its 5.3 per cent rise in March, while Toronto saw a 7.3 per cent increase compared to its 7.6 per cent rise in March.

Prices were up, however, in Winnipeg (1.9 per cent), Quebec City (1.7 per cent), Montreal (one per cent), Halifax (0.7 per cent), Edmonton (0.6 per cent) and Calgary (0.2 per cent).

Prices were down in Ottawa-Gatineau (−0.7 per cent), Victoria (−0.2 per cent) and Hamilton (−0.1 percent).

Ottawa-Gatineau’s correction has been the sharpest, a cumulative 6.1 per cent over the last eight months.

And with prices at their highest since January 2008, it is clear that the oil price collapse has not affected Edmonton house prices to the same extent than in Calgary.

Teranet-National Bank also reported that the composite price index rose by 4.4 per cent year-over-year, though it was a deceleration from March 2015.

The 12-month gain was above the countrywide average in Hamilton (7.6 per cent), Toronto (7.3 per cent), Vancouver (4.8 per cent) and Edmonton (4.7 per cent).

It lagged the average in Victoria (4.2 per cent), Quebec City (3.7 per cent), Calgary (three per cent), Halifax (1.2 per cent), Winnipeg (0.5 per cent) and Montreal (0.4 per cent).

In Ottawa-Gatineau, prices were down 2.3 per cent from a year earlier.    

For up-to-date house prices for neighbourhoods and cities across Canada, check out CREW's free online investment hotspot tool.

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