Calgary home prices advanced 1.5% between March and April, according to the Teranet-National Bank House Price Index released today. The monthly increase was the third in a row exceeding 1%, taking our market to a new high.
On a year-over-year basis, prices of Calgary homes that have sold at least twice posted a 10% hike. The monthly and annual increase was the highest across the nation.
April’s figures reinforced an east-west divide in Canadian real estate . In Vancouver, prices were up 9% y/y, in Toronto +5.8%, and Hamilton +5.3%. Trailing the national average were Edmonton (+4.0%) and Winnipeg (+2.5%).
East of Toronto, prices were down in Halifax (−3.5%), Quebec City (−2.4%) and Montreal and Ottawa-Gatineau (−0.4%). The lone region west of the GTA with an annual decline was Victoria, -0.7%. Overall, the national index was up 4.9% from the previous year.
TD Bank commentary highlights
- The Teranet home price index in April indicated that home price growth is picking up steam, even on a quality adjusted basis
- Lack of homes for sale in many of Canada’s major markets appears to be a key reason for mounting price pressures.
- Cities with the sharpest price growth (Vancouver, Calgary and Toronto) are currently in seller’s markets, meaning seller’s hold most of the bargaining power
- Home prices have maintained more momentum through 2014 than TD had originally anticipated
- While price growth still remains moderate by the Teranet measure, price gains are outstripping Canadian household income growth. With home prices already estimated to be 10% overvalued, the risk is for more froth to gather in the Canadian housing market
- Read entire TD commentary
National Bank commentary highlights
- Composite index looks robust, but was the third weakest April outside a recession.
- Excess supply observed in regions east of Toronto and should limit price increases over the next few months
- Elsewhere, the market is generally balanced and is even tight in Calgary.
- Overall, the Composite index should continue to grow over the next few months, especially since the largest monthly increases each year generally occur in May and June.
- Read entire National Bank commentary and view charts