Canada: House prices tick up in July, although momentum in the market is soft
House prices increased 0.7% on a monthly basis in July, according to the Teranet-National Bank Composite House Price Index, down slightly from June’s 0.8% gain. In July, prices in 10 of the 11 markets surveyed rose over the month prior. However, when adjusting for seasonal factors house prices actually fell in July, as was also the case in May and June. Year-on-year, house prices were up 0.4%, marginally lower than June’s 0.5% uptick.
In month-on-month non-seasonally-adjusted terms, prices in Winnipeg, Ottawa and Montreal registered the fastest increases in July, while prices in Toronto—which accounts for over one-third of the 11-city composite index—also edged higher. In contrast, prices in Vancouver continued to fall.
Commenting on the state of the housing market in July, James Marple, an economist at TD, noted:
“While affordability will remain a constraint in major high-priced markets, prices appear more likely to increase than decrease over the next year.”