record canadian home prices Photo: Hoffnungsschimmer/Flickr

Canadian home prices climbed back to a record high in December after a brief slide in November, according to the Teranet-National Bank National Composite House Price Index.

December’s 0.1 per cent month-over-month advance means the index has essentially returned to its all-time high achieved in October 2013. (Tweet this)

The small increase resulted in an acceleration of 12 month home price inflation to 3.8 per cent in December, up from 3.4 per cent in November. Year-over-year price gains surpassed the country-wide average in three of the 11 metropolitan markets that the index tracks. In Calgary, prices rose by 6.5 per cent over December 2012 while prices climbed 5.5 per cent in Vancouver. Home prices in Toronto also rose by 4.9 per cent.

Here are some more highlights from Tuesday’s report:

  • Markets that saw year-over-year price gains lower than the national average were Hamilton (+3.7 per cent), Edmonton (+3.6 per cent) and Winnipeg (+3.4 per cent).
  • Markets that saw year-over-year price gains that were significantly lower than the national average were Quebec City (+1.5 per cent), Ottawa-Gatineau (+1 per cent) and Montreal and Halifax (both at +0.4 per cent).
  • Home prices declined year-over-year for the 10th straight month in Victoria (-4.0 per cent).

In its report, Teranet said that while the composite index was up month-over-month in three of the last four months of 2013, “prices in all four of those months were down on the month in a majority of the 11 markets.” The monthly nationwide advance achieved in December was a result of the gains made in Edmonton, Vancouver and Toronto. All other markets surveyed saw a month-over-month decline moving from November to December.

The handy chart below that outlines all the index level changes is courtesy of Teranet:

house price index

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