Canada’s housing market housing market is expected to slow during the rest of 2012, with moderate economic growth in the first quarter of 2012.
The MLS Home Price Index (HPI) rose 5.2% during the year to May 2012, to a benchmark price of CA$451,900 (US$438,610), according to the Canadian Real Estate Association (CREA). The national house price index rose by 6.39% (5.08% in real terms) during the year to end-May 2012,, according to Teranet-National Bank of Canada.
Highest house price increases:
Northwest Territories (25.8%)
Prince Edward Island (22.4%)
Nova Scotia and Manitoba had average house price rises of 6.6% and 6.4%, respectively.
House price falls:
British Columbia was the only province to experience a sharp house price, with a 12.9% fall.
Home sales in Canada had their first monthly decline of the year in May. However sales were still 9% higher than a year ago, according to CREA. There was 5.9 months inventory on the market, up from 5.7 months in April.
To discourage house price rises, Finance Minister Jim Flaherty announced new mortgage rules, effective July 9, 2012, reducing the maximum amortization for government-insured mortgages from 30 years to 25 years, and lowering the maximum LTV ratio to 80%.
Canada’s housing market housing market is expected to slow during the rest of 2012, with moderate economic growth in the first quarter of 2012.
The MLS Home Price Index (HPI) rose 5.2% during the year to May 2012, to a benchmark price of CA$451,900 (US$438,610), according to the Canadian Real Estate Association (CREA). The national house price index rose by 6.39% (5.08% in real terms) during the year to end-May 2012,, according to Teranet-National Bank of Canada.
Highest house price increases:
Northwest Territories (25.8%)
Prince Edward Island (22.4%)
Nova Scotia and Manitoba had average house price rises of 6.6% and 6.4%, respectively.
House price falls:
British Columbia was the only province to experience a sharp house price, with a 12.9% fall.
Home sales in Canada had their first monthly decline of the year in May. However sales were still 9% higher than a year ago, according to CREA. There was 5.9 months inventory on the market, up from 5.7 months in April.
To discourage house price rises, Finance Minister Jim Flaherty announced new mortgage rules, effective July 9, 2012, reducing the maximum amortization for government-insured mortgages from 30 years to 25 years, and lowering the maximum LTV ratio to 80%.
Analysis of Canada Residential Property Market »