According to the Teranet National Bank’s Canadian Home Composite Price Index (HCPI), Canadian home prices increased in June, marking the largest 12-month gain on record as prices climbed in all 11 markets. The HCPI was up 16% year-over-year, beating the 14.2% rise of June 2017, which preceded the introduction of macroprudential measures designed to restrain home prices. Prices were up 10% or more in an unprecedented 90% of 32 urban markets and up 30% or more in 42 % of these markets. The HCPI rose 2.7% from May, 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% monthly increase recorded in May 2021. It was, however, 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.
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