The temperature has been very hot heading toward the Canada Day holiday. Home prices published this week by the Teranet-National Bank House Price Index for April, though, are a little cooler.
The report noted that prices in Toronto were down 7.6% compared with a year earlier and also slipped 0.6% when comparing April with March of this year -- the eighth monthly decline in a row and 11.3% below their August 2008 peak. Across the country, Canadian home prices in April were down 6.7% from a year earlier, representing the fifth consecutive year-over-year decline. This was also the eighth straight month-on-month decline for the composite index.
"The pace of decline in house prices is slowing. Although the number of sales pairs available to calculate the index is still lower (down 20%) compared to the same period a year ago," says Simon Cote, managing director, property derivatives, National Bank of Canada, "it is an improvement compared with the minus-50% 12-month change in the number of sales pairs registered in January."
Only homes that have sold at least two times are counted in the index.
Vancouver and Calgary also saw prices fall in April, 10.9% and 9.8% respectively, from a year ago. Bucking the downward trend were Montreal, where prices rose 2.4% year-over-year; Ottawa, which was up 0.6%; and Halifax, up 0.2%.
Source: National Post