The Toronto skyline in Canada

Canada Housing May 2018

Canada: House prices edge higher in May as Toronto posts gains

House prices rose 1.0% on a monthly basis in May as the Teranet-National Bank National Composite House Price Index ticked higher, accelerating from April’s 0.2% month-on-month increase. May’s rise appeared to confirm a nascent stabilization in house prices, which fell earlier this year as homebuyers were put off by higher borrowing costs and new mortgage-lending rules.

In May, all 11 cities included in the composite index posted gains from a month earlier. In Toronto, which accounts for more than a third of the 11-city composite index, prices climbed on tight conditions in the condo resale market—and pointed to a steadying in Canada’s largest property market. Vancouver and Montreal, meanwhile, also posted solid gains in May.

In annual terms, the rise in house prices moderated in May, slowing to 4.5% from 5.6% a month earlier and representing the eleventh consecutive monthly deceleration since last June’s record-breaking gains. Meanwhile, a separate dataset showed weaker house sales in May as turnover hit a five-year low. All told, housing fundamentals still appear solid despite the ongoing sluggishness in residential investment—although May’s gains suggest that recent market-cooling interventions, especially in Ontario and British Columbia, have run their course.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen