Photo: Nick Kenrick/Flickr
In March, the Teranet–National Bank National Composite House Price Index flatlined as Canadian home prices didn’t even budge from February. TD Economics had suggested that the lower-than-expected index in March would bounce back in the busy spring season and, according to the new index numbers for April, that prediction came true – somewhat.
Last month, the index did see a 0.5 per cent boost from March. However, it’s hard to see the increase as the robust turn in the market some had predicted. April tends to be a much stronger performer. Apart from the 2009 recession, the average monthly increase for the index has been 0.9 per cent and last month was the third weakest April outside a recession since 1999.
The nation-wide composite index did reach an all time high. But the story differs considerably region to region with only four of the 11 metros studied also reaching new peaks.
Because April 2013 saw somewhat sluggish price growth (the rise of the composite index was the smallest on record at 0.2 per cent), the 12 month home price inflation accelerated to 4.9 per cent from 4.6 per cent.
For the first time since October 2010, prices were down from April 2013 in five of the 11 markets that make up the index. East of Toronto, each of the markets slowed with Halifax dropping the most, with a 3.5 per cent year-over-year decrease. Quebec City followed at 2.4 per cent and Montreal and Ottawa-Gatineau both saw 0.4 per cent declines. The lack of price growth was blamed on excess supply in the resale market.
Aside from Victoria, which measured a 0.7 per cent decrease from April 2013, Ontario and the West saw significant increases. Calgary and Vancouver led the pack, seeing a 10 per cent and nine per cent increase respectively.
Toronto saw a 5.8 per cent increase, closely followed by Hamilton, which saw a 5.3 rise rise. Performing below the national average, Edmonton saw a four per cent bump, while Winnipeg measured a 2.5 per cent year-over-year increase.
For more details check out the table below: