Photo: Michel Craig/Flickr
Between November and December, Canadian home prices edged down by 0.2 per cent according to the Teranet–National Bank National Composite House Price Index. Though it was the second month in a row to see a monthly decline, winter slowdowns are common with price decreases between November and December a frequent occurrence in the last five years.
Of the 11 metro markets studied, five saw prices slump: Halifax (1.9 per cent), Calgary (1.1 per cent), Quebec City (1.0 per cent), Montreal (0.9 per cent) and Vancouver (0.4 per cent). Victoria and Winnipeg measured no change, while Toronto saw a 0.3 per cent boost, Edmonton recorded a 0.2 per cent increase and Hamilton and Ottawa-Gatineau both saw a slight 0.1 per rise. However, Hamilton’s increased actually pushed it to a new price record in December.
The year-over-year increases were more dramatic for the composite index. Teranet pointed to low mortgage rate as the reason for the increase, with the index up 4.9 per cent from the year before. It was a bigger surge than the 3.8 per cent increase in 2013 and 3.1 per cent rise in 2012.
Home prices increased in nine of the 11 urban areas, with Halifax and Quebec City seeing year-over-year decreases of 0.8 per cent and Halifax 2.5 per cent respectively.
The biggest increases were in Calgary (8.3 per cent), Hamilton (7.8 per cent), Toronto (7.2 per cent) and Edmonton (5.8 per cent). Close to the country-wide average, Vancouver saw a 5 per cent increase, Victoria counted a 3.2 per cent rise and Winnipeg recorded a 1.5 per cent boost.
The index barely budged in Montreal and Ottawa-Gatineau with increases of 0.3 per cent and 0.1 per cent, respectively.