While sales levels were dropping, prices were still on the rise in May according to the Teranet-National Bank House Index. Canadian home prices in May were up 13.6% from a year earlier.
Teranet – National Bank National Composite House Price Index™
The 12-month gain was most influenced by:
- Vancouver (+17.1%)
- Toronto (+16.0%)
- Ottawa (+11.4%)
- Montreal (+8.5%)
- Halifax (+5.6%)
May was the second consecutive month in which prices were up from the month before in all 6 metropolitan areas surveyed. The monthly rise of the composite index, 1.3%, was the largest since last September.
The month-over-month rise was:
- Ottawa (+2.3%)
- Montreal (+1.8%) -the largest gain in this market since June 2007
- Vancouver (+1.2%)
- Toronto (+1.1%)
- Halifax (+0.7%)
Calgary Prices
In Calgary, prices were up 7.8% from the previous year, and up 1.2% from the previous month.
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The Teranet report included the following commentary:
Since market conditions have been loosening across Canada – from April to June of this year, the number of existing homes sold declined much faster than the number of new listings – it is too early to conclude that the relatively vigorous prices rises of April and May mark the beginning of a trend.
What happened to the Bank of Canada interest rates and credit granting standards at CMHC during this period ?