February 14, 2017 5:36 pm
Updated: February 14, 2017 5:37 pm

Canadian home prices continue to climb in January, Toronto up .5% over December

A real estate sold sign hangs in front of a west-end Toronto property Friday, Nov. 4, 2016.

THE CANADIAN PRESS/Graeme Roy
A A

Canadian home prices rose in January as values in the hot Toronto market climbed even further, while Vancouver prices picked up after three months of declines, the Teranet-National Bank Composite House Price Index showed on Tuesday.

Story continues below

The index, which measures changes for repeat sales of single-family homes, showed that prices rose 0.5 percent month to month and 13.0 percent from a year ago.

It was the 12th consecutive month that national home prices have risen and the largest annual increase since January 2007.

READ MORE: Canadian house-price gains slow in December, amid cooling in Toronto and Vancouver

The monthly gain was driven by an 0.8 percent increase in Toronto, which had its 12th straight monthly increase, and a 1.1 percent rise in nearby Hamilton, where prices have climbed as home buyers were shut out of the expensive Toronto market.

Toronto and Hamilton racked up record annual increases of 20.9 percent and 17.6 percent, respectively.

Canada’s housing market has been robust since the global financial crisis, boosted by low borrowing rates. The government tightened mortgage lending rules late last year to rein in consumer borrowing, a move that is expected to cool housing activity this year.

READ MORE: Impact of Toronto-area home prices being felt in wider circle of Ontario cities: CMHC

But recent data has suggested the housing market was off to a strong start in 2017. Indeed, the rise in the Teranet index signaled that prices have doubled since June 2005.

Prices in Vancouver rose 0.3 percent on the month, suggesting the once-hot market could be perking back up. The provincial government imposed a tax on foreign home buyers in the city last year to address affordability issues, which took some steam out of the market.

Prices in Vancouver were up 16.4 percent from a year earlier, but 2.5 percent below the peak reached in September 2016, Teranet said.

Overall, prices were up in seven of the 11 markets surveyed. In addition to Toronto, Vancouver and Hamilton, prices rose from a month earlier in Montreal, Victoria, Calgary and Quebec City, while prices in Halifax were flat.

Prices fell in Winnipeg, Ottawa and Edmonton.

© 2017 Thomson Reuters

Report an error

Comments

Want to discuss? Please read our Commenting Policy first.