Canadian Housing Market Records 6.9% Year Over Year Decline in March 2023

Image by: unsplash

According to the Teranet-National Bank Composite Home Price Index (HPI), Canada's housing market has seen a 6.9% year-over-year decline from March 2022 to March 2023, which is worse than the previous record set during the 2008-2009 financial crisis. Eight of the eleven Canadian metropolitan areas recorded price declines, with Hamilton, Toronto, and Victoria being the most significant. Calgary led the way with a 7.6% year-over-year price increase, followed by Quebec City with a 4.1% gain, and Edmonton with a 2.2% increase. The Teranet-National Bank Composite HPI also provides data on 20 other Canadian cities not included in the composite index. Of the 20 cities, seven recorded annual gains, with Trois-Rivières registering an 18.8% increase. Monthly changes in the HPI also showed a mixed picture, with the index decreasing by 0.8% from February to March, marking the ninth consecutive monthly decline after adjusting for seasonal effects. Before seasonal adjustments, the index increased by 0.5% over the same period, indicating a slight recovery in housing prices. It's important to note that the Teranet-National Bank Composite HPI is based on closed transactions, so it typically lags behind the market. Nonetheless, the decline in housing prices in many of Canada's metropolitan areas could be cause for concern for homeowners and investors alike.

Read the full article on: REAL ESTATE MAGAZINE