June saw the largest home prices increase in 12 months

The Teranet National Bank composite price index shows that real estate prices in Canada saw the biggest increase in 12 months, with all 11 housing markets reporting gains.

According to the recent report, the index rose by 16% compared to June 2020, outpacing the 14.2% gain seen in June 2017 before the implementation of macroprudential measures aimed at reducing real estate prices.

Home prices rose at least by 10% in 90% of 32 urban markets and at least by 30% in 42% of these markets.

The largest increase of 30.8% was reported in Halifax. Then followed Hamilton (28%), Ottawa-Gatineau (25.8%), Montreal (19.4 %) and Victoria (18.5%). Toronto showed the nationwide average of 15.9%.

The price index went up by 2.7% from May, marking the 20th monthly gain in a row and the second-largest monthly increase since the index started in 1999. It was outpaced only by 2.8% seen in May.

Meanwhile, it was also the first monthly slowdown since January. Such a cooling coincides with a slowing of existing homes sales growth, which was down in June for the third consecutive month.

The slowdown in sales could mean a slowing of price growth in the short-term, but no prices declines are expected in the nearest future.

The biggest monthly prices gain of 4% was reported in Ottawa-Gatineau. It’s followed by Hamilton (3.8 per cent), Victoria (3.6 per cent), Halifax (3.5%), Montreal (3.4%), Vancouver (2.7%), Toronto (2.7%), Calgary (1.4%), Winnipeg (1.3%), Quebec City (1.3%) and Edmonton (1.1%).