Canadian home prices dropped in November, the third consecutive monthly decline and the biggest November fall outside of a downturn, since Toronto prices fell for the fourth month and Vancouver costs were flat, data showed on Wednesday.
The Teranet-National Bank Composite House Price Index, which measures changes for repeat sales of single-family houses, showed national prices dropped 0.5 percent in November from the month before as four of the 11 cities surveyed weakened.
The index was up 9.2 percent from a year before, a fourth consecutive deceleration from record earnings seen earlier in the year, as government steps to rein in the housing market continued to dampen demand.
In Toronto, prices fell 1.4 percent on the month. Costs have retreated because the Ontario government imposed a foreign buyers taxation in April in an attempt to cool the industry and douse speculation in Toronto and the surrounding region.
Teranet stated there were some indications buyers may have increased activity in November in an effort to finish purchases prior to new mortgage strain tests are needed in January. Additionally, it stated Toronto’s condo market seems to have regained some power even as the more expensive detached market remains weak.
In Vancouver, where the British Columbia government implemented its own tax on overseas buyers over a year ago, prices were flat after six consecutive months of record highs, Teranet stated. Vancouver’s condo subindex has demonstrated the most strength, notching 10 consecutive monthly gains for a complete rise of 19.0 percent.
Although Vancouver initially slowed after the tax was imposed in August 2016, prices have since recovered ground and some economists believe the downturn in Toronto will be equally short lived.
The Montreal and Halifax indicators were also at record highs, the report revealed.
Courtesy: The Globe And Mail