The Teranet-National Canadian House Price Index has seen growth in some of Canada's key cities recently.
According to an article on cbc.ca, the index, which comprises the composite of resale prices in these Canadian cities, has been stable over the past few months. Hamilton, Toronto and Vancouver have contributed to these all-time high indexes that mirrors the sellers' market in these areas. Toronto and Hamilton have each garnered 8.7% and 8.8% respectively whilst the Vancouver home market reflected on prices going up as high as 9.7% last year alone.
Although home prices in these Canadian cities are already good, the housing price index is still seen as unpredictable, as stated in the same article.
In another report on theglobeandmail.com, National Bank's Chief Economist and Strategist Marc Pinsonneault said, "The dichotomy on the Canadian residential market is more obvious than ever. On one side, 12-month price increases over 8 per cent in Vancouver, Toronto and Hamilton have pushed the Teranet-National Bank national composite index to a near record in August for a sixth consecutive month."
He adds "On the other side, prices in the eight remaining regions have grown over all a mere 0.2 per cent."
Mr. Pinsonneault also remarked on the housing types selected by home buyers in Vancouver and Toronto. Condo unit prices have risen about 5.5%, while other homes fared more than well enough at 10%. "Were it not for non-condo dwellings in these two regions, house prices at the national level would have risen much less than the 12-month rate of 5.4 per cent reached in August," he continued.
Still in the same article, David Madani said "The ratio of sales to new listing suggests annual price gains, driven by Vancouver and Toronto, will climb ever higher to 6 per cent before the end of the year." He is Capital Economics' chief economist.
