While the fall season generally brings with it a boost to Canadian home prices, last month appeared to be an exception.
The Teranet-National Bank Composite National House Price Index fell 0.4 percent month-over-month in October, a record low for a month that usually sees a bump in home prices.
“Only one of the 11 constituent metro areas recorded an increase on the month (the lowest [level] of gains since December 2012),” writes National Bank senior economist Marc Pinsonneault, in his most recent note.
Montreal home prices rose by just 0.2 percent last month, while Toronto fell 0.2 percent and Vancouver was down 0.8 percent.
But Pinsonneault is quick to point out that the story varies between markets.
“Home prices are showing signs of weakness at the national level, but the market is far from being homogeneous,” he writes. “For example, on a seasonally adjusted basis, Vancouver showed no gain for a fifth month in a row, for a cumulative loss of 1.6 percent.”
In Toronto, condo prices remained on their upward trend, while Montreal saw a dip in the usually popular property type.
According to Pinsonneault, industry watchers should brace for slowing price gains in the coming months, as the Bank of Canada continues to hike interest rates.
“With interest rates set to rise again in the coming months, we don’t see much upside for home prices,” he writes.