Photo: Nick Kenrick/Flickr
Although house prices across Canada inched up 0.9 per cent between May and June, the rise was below the norm. According to the latest Teranet House Price Index, that increase was the second smallest for June in the last 10 years. It also fell below the norm set in the last five years – from 2009 through 2013 the index rose at least one per cent month-to-month.
Seven of the 11 cities tracked saw an increase from May. Hamilton and Montreal led the pack and broke records with increases of 3.1 and 2.8 per cent, respectively. Increases were also measured in Victoria (1.8 per cent), Toronto (1.4 per cent), Edmonton (1.1 per cent), Calgary (0.9 per cent) and Ottawa-Gatineau (0.5 per cent).
Prices fell from May to June in Quebec City by 0.4 per cent, while Winnipeg recorded a 0.6 per cent drop and Vancouver and Halifax saw decreases of one per cent and 1.2 per cent respectively.
Other index numbers suggest the market could be slowly running out of steam. In June, the 12-month home price inflation decelerated to 4.4 per cent, the lowest it’s been in six months. It’s also a step down from the 4.6 per cent year-over-year increase reported in May.
Still, some markets leaped over the national average with Calgary’s prices rising by 8.1 per cent year-over-year, Hamilton seeing a 7.3 per cent surge and the pricey markets of Vancouver and Toronto both measuring a 6.1 per cent increase over 2013.
Edmonton was more in line with the national average after seeing a 3.5 per cent increase. Victoria followed with a 1.6 per cent rise and Montreal recorded a 1 per cent increase. While Winnipeg prices slumped 0.4 per cent from June 2013, prices remained almost double the prices recorded nine years ago — the biggest gain of any of the 11 markets over that same time frame.
A handful of cities measured declines including Ottawa-Gatineau (1.7 per cent), Quebec City (2.4 per cent) and Halifax (2.5 per cent), which Teranet attributes to oversupply in the resale market.
For more details, check out the table below: