An index looking at home prices in Canada declined in December as major cities notched price decreases.

The monthly Teranet-National Bank Composite House Price Index, which looks at Canada’s 11 biggest cities, declined 0.5 per cent month-over-month in December.

Seasonally adjusted housing prices declined in just four of the 11 cities, with the steepest decline coming out of Victoria, where prices came down 3.9 per cent.

The other three cities with price declines – Vancouver, Toronto and Ottawa-Gatineau, with decreases of 1.5 per cent, 0.8 per cent and 0.3 per cent, respectively – carried enough weight to bring the total average down for the third straight month, according to a Thursday press release on the figures.

“Persistent affordability issues, combined with a less buoyant job market, have contributed to the decline in property prices,” a statement reads. “Despite a less vigorous economy, we are not yet witnessing a wave of additional supply on the real estate market.”

“For the months ahead, prices should continue to decline despite the support of historical population growth and the shortage of housing supply, as the deterioration in the labour market is set to continue.”

Meanwhile, prices climbed the most in Calgary, where home prices hiked 2.3 per cent, while Halifax (2.3 per cent), Quebec City (0.9 per cent) and Hamilton (0.9 per cent) also saw significant price hikes.


The index rose three per cent year-over-year.

Halifax’s housing prices climbed a whopping 10.3 per cent in the year.

Only Edmonton (1.6 per cent) saw housing prices decline year-over-year, while Victoria remained stable.

The report follows other recent data on the housing market in Toronto that found prices fell in the month, but could climb soon. 

“Relief seems to be on the horizon,” a statement from the Toronto Regional Real Estate Board

“Borrowing costs are expected to trend lower in 2024. Lower mortgage rates coupled with a relatively resilient economy should see a rebound in home sales this year."

A similar report from the Real Estate Board of Greater Vancouver found housing prices declined 1.4 per cent in December compared to November.