Teranet: Real estate prices may be softening

New data from Teranet, an international leader in electronic land registration systems and commerce, indicates that Canadian real estate prices may be softening.

The Teranet-National Bank House Price Index experienced a 0.8% drop in September compared to August, the largest drop since September 2010, according to analysts from the National Bank of Canada. This was also the first time the 11-city composite has dropped since January 2016.

The monthly drop was led by Toronto, the nation’s largest real estate market. From August to September, Toronto experienced a 2.7% decline. Four other cities in the 11-city composite saw declines: Quebec City (-2.3%), Hamilton (-1.9%), Halifax (-0.4%), and Winnipeg (-0.3%).

Despite the monthly decline, annual gains are still evident, though they’ve begun to taper. September represented an 11.4% gain when compared to the same time last year. This is down from the record 12-month gains observed in June and July, when it was 14.2%.

Not all Canadian regions experienced lower prices, as five cities saw monthly price increases: Vancouver (1.3%), Calgary (0.7%), Montreal (0.3%), Ottawa-Gatineau (0.3%), and Edmonton (0.2%). With the exception of Vancouver, none of these markets have had price booms in recent years.
 

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