Photo: James Wheeler/Flickr
In February, the Teranet-National Bank National Composite House Price Index rose 0.3 per cent from January, the second month in a row where Canada set a new record for prices.
However, markets in the West won the biggest gains. Out of the 11 metros studied, Vancouver broke a new record with prices trending upward for the fourth straight month and Calgary did so for the first time since September 2007.
Last February, the index fell by 0.2 per cent from the month before, meaning the February 2014 increase resulted in an acceleration of 12 month home price inflation to 5.0 per cent from 4.5 per cent.
Here’s how the major markets fared:
It’s a clear case of east versus west when it comes down to price changes between January to February. Prices were up in all five Western markets: Calgary (1.1 per cent), Vancouver and Victoria (0.9 per cent), Edmonton (0.6 per cent) and Winnipeg (0.5 per cent).
Out of the six markets in Central Canada and the East Coast, the only month-to-month increase was the 0.7 per cent boost in Montreal. Prices were down 0.1 per cent in Toronto, making February the fourth month without a gain in the last six months. Ottawa-Gatineau saw a 0.8 per cent decline, the sixth in a row, while Quebec City’s 1.7 per cent drop was its sixth in seven months. Halifax’s 1.7 per cent drop was also the third decline in a row.
Cities that saw year-over-year gains greater than the 5.0 per cent average include Calgary (which rose by 9.6 per cent), Vancouver (7.7 per cent), Toronto (6.1 per cent) and Edmonton (5.3 per cent).
Hamilton saw its index rise at the same rate as the national average. Winnipeg and Montreal saw increases below that average, with 3.5 per cent and 1.9 per cent gains respectively.
The cities that posted decreases were Halifax (4.7 per cent) and Ottawa (0.6 per cent), which both saw year-over-year prices decline for the second month in a row. The 3.4 per cent decrease seen in Victoria represented 12 months of declining year-over-year prices. Quebec City, which saw a 2 per cent drop, recorded its first 12 month deflation. Taken altogether, it’s the first time since October 2009 that price deflation was present in at least four of the regions covered.
For more details check out the table below: