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The Teranet-National Bank Composite House Price Index (HPI) experienced a significant 2.2 per cent jump in June, the highest single-month increase since November 2006. This marks the third consecutive monthly rise, indicating a widespread housing price rebound across the country. In June, 81 per cent of cities covered by the index saw price increases, with Toronto and Vancouver leading the way with notable gains of 2.9 per cent and 2.6 per cent, respectively.
Despite the recent positive trend, potential challenges lie ahead for the housing market. The Bank of Canada's recent rate hikes and expected economic weakness in subsequent quarters could act as headwinds for house prices. However, experts note that factors such as strong demographic growth and a limited supply of properties on the market may continue to support prices in the third quarter.
Looking at the year-over-year data from June 2022 to June 2023, the Composite HPI experienced an overall contraction of 5.1 per cent, which is a smaller decline compared to the previous month. Calgary exhibited the most significant year-over-year price increase at 6.5 per cent, while some cities, such as Hamilton, Ottawa-Gatineau, and Toronto, faced steep declines in housing prices. Other cities outside of the composite index showed mixed results, with some experiencing gains and others witnessing price declines.
Read the full article on: REAL ESTATE MAGAZINE
