A new report has seen a downward trend in house price across major Canadian cities, including Montreal, Winnipeg, Calgary and Hamilton, Ontario.
But this falling price trend may not be the general scenario for other parts of the country: the Teranet House Price Index found a 0.2% rise in January for all of Canada. This figure followed the declines in December and January.
Both Toronto and Vancouver have shortages in single family homes for reselling but remained strong last month. Home prices were up 7.4% in Toronto and 5.1% in Vancouver on an annual basis.
The two cities are also popular immigrant destinations, prompting stronger housing demand.
Meanwhile, Edmonton gained 6.1% on the year and 0.3% this month despite plunging oil prices.
Both Hamilton and Calgary, second only to Toronto in the annual gain in housing prices, saw drops in January. Hamilton’s property values went down by 0.3% and Calgary’s by 0.6%.
These downward figures support the Calgary Real Estate Board’s forecast that there will be sliding sales this year as falling oil prices result in bringing down Alberta incomes.
Teranet National Bank analysts added that the price behaviour in Ottawa, Montreal, Quebec City and Halifax was in line with “buyer’s-market conditions.”
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