Canada house prices climbed 5.6% in the past year – Teranet

• Prices up 0.2% m/m
• Second consecutive monthly rise
• Up 1.6% non-seasonally adjusted
• Year-over-year prices rises in all 11 cities in the index, led by Calgary up 14.3% y/y

Canada has a major problem on its hands. Mortgage rates are crushing younger people with mortgages but older people without them or huge amounts of home equity are flush and continuing to spend. There’s also been massive immigration, adding further pressure on housing.

I was worried at the start of the year about a deeper housing correction but it’s not happening and now we’re seeing signs of fresh house price acceleration.

This article was written by Adam Button at www.forexlive.com.