Canadian home prices rose 0.2 percent in October, driven by Vancouver

Much of Canada’s 0.2% increase in resale home prices in October compared to September was driven by a 1.2% jump in Vancouver. Without including Vancouver in the Index, October would have posted zero growth.

The Teranet-National Bank Composite House Price Index, which gauges price fluctuations for repeat sales of single-family dwellings, showed that prices had increased by 5.4% in October compared to the same month in 2013, the same as September’s year-on-year rise.

Out of 11 metropolitan markets covered in the survey, resale home prices in October increased in only five, which is the narrowest dispersion of the year so far.

The following metropolitan markets posted above-average gains: Montreal 0.3%, Calgary 0.5%, and Hamilton 0.9%. Prices in Quebec City matched the national average.

Prices declined in Halifax -0.8%, Winnipeg and Ottawa-Gatineau -0.4%, Victoria and Toronto -0.2%.

For the last 11 successive months the composite index has not declined.

Canada Home Resale Prices

(Source: Teranet – National Bank House Price Index. Developed by Teranet in alliance with National Bank of Canada.)

Year-on-year rises in October were registered in Calgary 9.1%, Toronto 7.4%, Hamilton 7.3% and Vancouver 6.5%.

The twelve-month gain was more moderate in Ottawa-Gatineau 0.2%, Halifax 0.4%, Quebec City 1%, Montreal 1.1% and Winnipeg 2.5%.

House resale prices year-on-year in Victoria declined by -0.1% in October.

House prices as well as sales volumes have been boosted by near-historically low mortgage rates over the last seven months.

The monthly level of house sales across Canada (seasonally adjusted) has been higher than 40,000 units for five months running. The last time this happened was in April 2010.