Housing prices across Canada rose in August, marking their sixth consecutive monthly rise, according to new data from the Teranet-National Bank House Price Index.
The index rose by 0.6 per cent from July to August prior to seasonal adjustments, and 1.6 per cent after seasonal adjustments were made.
All 11 metropolitan areas included in the index recorded home price increases in August, the first time that has happened since March 2021, according to a press release on the findings. The strongest growth was reported in Calgary at 3.5 per cent. Vancouver and Hamilton reported the second-strongest growth, at 2.8 and 2.4 per cent respectively.
The smallest increases were seen in Victoria at 0.2 per cent, and Winnipeg and Montreal at 0.7 per cent growth.
Year-over-year, the index rose by 1.1 per cent from August of 2022, marking the first annual increase in nine months. Compared with last year, prices in August were higher in five of the 11 cities included in the index.
The cities that saw the sharpest annual rises were Calgary, at 6.2 per cent, Halifax, at 5.1 per cent, and Quebec City, which saw a 3.6 per cent price increase.
Cities where home prices fell the most in August compared to last year were Winnipeg, down 3.6 per cent, Ottawa-Gatineau with prices down 2.3 per cent, and Hamilton and Montreal, which each saw a 1.7 per cent decrease.
The data on rising home prices came despite recent tightening by the Bank of Canada in its continued efforts to curb inflation.
Strength in the housing market may be “short-lived” with interest rates likely driving prices down soon, Teranet and National Bank noted in a statement on the findings – though price decreases will be minimal due to continued pressures on the housing market, they added.
“Property price decreases should remain limited thanks to the support of historical demographic growth and the persistent lack of housing supply,” their statement said.
The central bank’s next rate decision is set for Oct. 25.