Teranet-National Bank HPI shows prices the annual increase in June smashed the 2017 record
Investors in Canadian housing should have seen a huge surge in the value of their assets in the past year.
Average nationwide home prices grew by a record 16% in the 12 months to June, the latest Teranet-National Bank National Home Price Index reported Tuesday.
This new record is even more impressive because the previous record – 14.2% in June 2017 – was set just before new macroeconomic measures were introduced to try to cool the housing market, sparking a buying frenzy.
Also, while the 2017 surge was concentrated on Vancouver and the Golden Horseshoe region of Ontario, the new high reflects a broader rise in prices with 90% of the 32 urban markets included posting at least a 10% increase.
For 42% of the markets, there was an unprecedented price rise of 30% or more.
The index is based on a percentage increase from a base of 100 set in June 2005. The latest reading is 276.28 meaning that prices were more than 176% higher in June 2021 than 16 years earlier.
Among the markets posting the highest year-over-year gains were Abbotsford-Mission, BC (29.6%), Moncton, NB (27.7%), Halifax, NS (30.8%), Barrie, ON (35.4%), and Trois-Rivières, QC (20.7%).
Toronto saw a 16% rise with Vancouver just behind at 15%.
Are things slowing?
The June monthly gain of 2.7% in the national composite index was its 20th consecutive monthly rise and the second largest since the beginning of the index in 1999.
But this was the first deceleration of monthly price rises since January (May posted a 2.8% increase) and with existing home sales slowing down, the Index analysts believe deceleration could continue in the coming months. However, this is likely to be a slowing of price growth rather than declining home prices.
