![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2018\/06\/Screen-Shot-2018-06-13-at-11.47.28-AM.png\")
<\/a><\/p>\nTen of the 11 markets covered by the index saw price increases last month. Vancouver and Victoria led the charge with 15.4 and 10.3 per cent increases, respectively.<\/p>\n
The reason for the boost? A new mortgage stress test introduced in January has taken a bite out of Canadian home buyers wallets, causing a surge of demand \u2014 and prices \u2014 in the country\u2019s condo market.<\/p>\n
\u201cIt is true that this stabilization was accompanied by a shift of price momentum in favor of condos in Toronto and Vancouver,\u201d writes Pinsonneault. \u201cGiven the high price level for other types of dwellings in these cities, rising interest rates and tighter mortgage underwriting standards, this shift should not be surprising.\u201d <\/p>\n
Pinsonneault notes that the bump in prices could be a sign that the market has largely adjusted to the new mortgage rules, after its first quarter price drop.<\/p>\n
\u201cIn other regions covered by the Composite index, prices have regained most of the ground lost in Q1 [of 2018],\u201d he writes.<\/p>\n
And while it\u2019s possible that prices could fall again later in the year, Pinsonneault writes that they\u2019re unlikely to dip too much farther in the coming months. <\/p>\n
\u201cGiven that interest rates are likely to continue to increase, a relapse of home prices over the next few quarters cannot be ruled out,\u201d writes Pinsonneault. \u201cBut their resilience so far suggests that price declines would then be limited in scope.\u201d<\/p>\n
\u201cMay\u2019s rise in the Teranet-National Bank HPI confirmed the stabilization of home prices that took place since the end of last year, following a correction in [the second quarter of 2017],\u201d writes National Bank senior economist Marc Pinsonneault, in a recent note.<\/p>\n","protected":false},"author":31,"featured_media":181867,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","apple_news_api_created_at":"2018-06-13T17:36:19Z","apple_news_api_id":"3486e6b6-6786-4d26-89b7-c0277a722690","apple_news_api_modified_at":"2018-06-13T17:36:20Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/ANIbmtmeGTSaJt8AnenImkA","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":["https:\/\/u48r14.digitalhub.com\/sections\/09b86915-7d2b-3acd-915b-b215002d01b7"],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[11269],"tags":[],"coauthors":[9678],"apple_news_notices":[],"yoast_head":"\n