Housing prices have continued to climb – and according to the latest report from Teranet, June’s month-over-month increase surpassed the 10-year average.
The Teranet–National Bank National Composite House Price Index™ has increased 1.4 per cent in June from May, marking the sixth consecutive monthly increase. Every June for the past ten years, the index has risen an average of 1.3 per cent, meaning that in 2015 the increase was slightly higher than usual. Seven of eleven metropolitan markets surveyed experienced an increase,with Victoria, Calgary and Hamilton leading the way, followed by Toronto, Ottawa, Vancouver and Montreal. Four of the eleven markets surveyed, on the other hand, did not experience an increase; prices stagnated in Edmonton, and Halifax, Quebec City and Winnipeg saw a decrease in prices.
According to Teranet, composition indexes were high in June, but “Vancouver, Hamilton, and Toronto component indexes were the only cities that matched in this regard,” which is unsurprising given the immense competition and tight resale market conditions in these cities.
When comparing Teranet–National Bank National Composite House Price Index™ on a year-over-year basis, home prices have increased 5.1 per cent. Significant gains were evident in Vancouver and Toronto, which far exceeded the countrywide average. In contrast, some cities fell below the average including Edmonton, Quebec City, Winnipeg , Halifax, Ottawa, Calgary and Montreal.
The corresponding infographic illustrates the index level, per cent change month-over-month as well as year-over-year for eleven metropolitan areas across Canada.