Canadian Home Prices Plummet by Most on Record in September
Canada’s real estate bubble is losing air— and fast.
Latest Teranet–National Bank National Composite House Price data showed that home prices tumbled 3.1% between August and September, marking the sharpest monthly drop on records dating back to 1999. The index tracks single-family home sales across Canada’s major real estate markets, and is now down 7% from May’s peak, largely led by declines in Victoria and Vancouver, where prices fell 5.9% and 3.5%, respectively. The regions where home prices exploded during the pandemic are now being hit by rapidly-shrinking values, as buyers grapple with rising interest rates and subsequent higher stress test rates.
In contrast, home prices increased in Calgary and Edmonton during that time period, where the index jumping to new highs in August. Even though home prices increased 6% from one year ago, September was the fifth straight month of declining growth. Still, all eleven cities comprising the index noted year-over-year growth, with the largest gains in Halifax, Calgary, and Montreal.
Information for this briefing was found via the National Bank of Canada. 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.
