Canada May Teranet house price index +0.5% m/m

• Prices up 0.5% seasonally adjusted
• Prices up 1.7% non-seasonally adjusted
• Prices up 5.7% y/y
• Prices are 2.04% from the May 2022 peak

Leading cities y/y:

• Calgary 16.4%
• Halifax 11.4%
• Vancouver 8.7%
• Toronto +2.8%

The early indications from the Bank of Canada rate cut were a bit of a surprise as it sparked a jump in listings rather than a jump in buyers.

“The increase observed in May was entirely due to a rise in prices in the non-condo segment (+0.7%), while condo prices have remained relatively stable since August 2023 as inventory in this segment continues to accumulate,” Teranet reports. “While record population growth, the shortage of housing supply and the start of rate cuts by the Bank of Canada will continue to support the Canadian real estate market in the months ahead, we are cautiously optimistic about the magnitude of any recovery in the housing market in the months ahead and its potential impact on prices. Indeed, many uncertainties remain, including the risk of a further deterioration in the labour market, particularly among young people who are facing the worst affordability conditions in decades.”

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