Canadian Home Prices Jump 16% in June, Sharpest Annual Gain on Record
According to the Teranet National Bank composite price index, home prices across Canada posted the 20th consecutive increase, rising by 2.7% from the prior month, as all of the 11 constituent markets reported gains. This marked the second-biggest monthly jump on records dating back to 1999, only lagging slightly behind the 2.8% increase reported in May.
The index was 16% higher compared to June 2020, exceeding the 14.2% increase reported in June 2017, and marking the sharpest annual increase in home prices on record. Of the 32 urban housing markets across Canada, 90% of them reported price gains of more than 10%, while 42% of these urban markets noted price increases of 30% or more. The record-breaking 12-month increase was led by five main markets, including Halifax, Hamilton, Ottawa-Gatineau, Montreal, and Victoria.
However, despite the record-high gains, the month of June also saw a slight deceleration in prices compared to the beginning of the year, which coincides with the recent declining trend of home sales, as reported by the Canadian Real Estate Association. As such, the slight cooling in real estate activity could mean that price gains could slow over the coming months, but a decline in prices likely will not happen anytime in the short-run.
Information for this briefing was found via the Teranet National Bank. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.