Canadian home prices up 16% in June for largest 12-month gain on record, says index

OTTAWA — Canadian home prices increased in June to mark the largest 12-month gain on record as prices climbed in all 11 markets, says the Teranet National Bank composite price index.

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The index was up 16 per cent from June 2020, beating the 14.2 per cent rise of June 2017 that preceded the introduction of macroprudential measures designed to restrain home prices.

Prices were up 10 per cent or more in an unprecedented 90 per cent of 32 urban markets and up 30 per cent or more in 42 per cent of these markets.

Halifax led with prices climbing 30.8 per cent over the past year, followed by Hamilton (28 per cent), Ottawa-Gatineau (25.8 per cent), Montreal (19.4 per cent) and Victoria (18.5 per cent). Toronto trailed the countrywide average at 15.9 per cent.

The index rose 2.7 per cent from May for the 20th consecutive monthly increase. It was the second-largest monthly gain on record since the index started in 1999, trailing only the 2.8 per cent monthly increase recorded in May. 

It was also the first monthly deceleration since January, a cooling that coincides with a slowing of growth in sales of existing homes sales, which fell in June for a third straight month. 

The moderation in the pace of sales could mean a slowing of price rises in the coming months but price decreases aren’t expected in the near-term.

Ottawa-Gatineau led with a four per cent increase in monthly prices, followed by Hamilton (3.8 per cent), Victoria (3.6 per cent), Halifax (3.5 per cent), Montreal (3.4 per cent), Vancouver (2.7 per cent), Toronto (2.7 per cent), Calgary (1.4 per cent), Winnipeg (1.3 per cent), Quebec City (1.3 per cent) and Edmonton (1.1 per cent). 

This report by The Canadian Press was first published July 20, 2021.

The Canadian Press