In August 2023, the Canadian housing market exhibited notable month-over-month and year-over-year trends, providing valuable insights for both buyers and sellers.
Month-Over-Month Growth
Before seasonal adjustments, the Teranet-National Bank Composite House Price IndexTM saw a steady rise of 0.6% from July to August. This marks the sixth consecutive monthly increase in housing prices, highlighting ongoing market strength.
Seasonal Effects
After accounting for seasonal effects, the Teranet-National Bank Composite House Price IndexTM registered a growth rate of 1.6% from July to August. While this continues the trend of monthly increases, it reflects a slightly slower pace compared to the previous month.
Regional Variation
In August, all 11 major Canadian Metropolitan Areas (CMAs) included in the index experienced price increases. The most significant growth was observed in Calgary (+3.5%), Vancouver (+2.8%), and Hamilton (+2.4%). Conversely, the smallest increases were noted in Victoria (+0.2%), Montreal (+0.7%), and Winnipeg (+0.7%). Beyond the composite index, 17 out of 20 additional CMAs recorded growth, with Saint John (+11.2%), Sudbury (+6.5%), and Moncton (+5.2%) leading the way. However, Lethbridge (-4.1%), Barrie (-0.6%), and Belleville (-0.6%) witnessed decreases.
Year-Over-Year Analysis
From August 2022 to August 2023, the Teranet-National Bank Composite Home Price IndexTM displayed a 1.1% annual increase. This marks the first annual growth in nine months, indicating a shift in the market’s trajectory.
Regional Yearly Variances
Among the 11 cities in the composite index, Calgary experienced the most significant annual price increase at 6.2%. Halifax followed closely with a 5.1% gain, while Quebec City recorded a 3.6% growth. In contrast, Winnipeg (-3.6%), Ottawa-Gatineau (-2.3%), Hamilton (-1.7%), and Montreal (-1.7%) saw the most substantial declines in prices.
Beyond the Composite Index
In the 20 CMAs not included in the composite index, annual gains were observed in nine of them. Saint John (+20.6%) and Trois-Rivières (+10.2%) demonstrated the most robust increases, while Belleville (-4.6%) and St. Catharines (-4.4%) experienced the steepest declines.
As the Canadian housing market evolves, understanding these trends is essential for making informed decisions in the dynamic real estate landscape.
For homeowners, the August 2023 trends signify the resilience of the housing market. Month-over-month increases showcase ongoing stability, while year-over-year growth signals a positive shift.
Homebuyers can benefit from a market that remains active. While prices continue to rise, the slower month-over-month pace suggests a potential stabilization.
Sellers may find confidence in rising prices, especially in regions like Calgary and Halifax. However, understanding local variations remains crucial. Contact us to learn more about the North Vancouver market.
The real estate market as a whole reflects adaptability and recovery. These insights empower informed decisions, highlighting opportunities in this evolving landscape.
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[1] The Teranet–National Bank House Price Index is based on the repeat-sales method, i.e. on the change in price between the two most recent sales of a given property.