Canada home prices registered mixed trends in May 2009 across the country's major metropolitan markets, according to the latest release of the Teranet-National Bank of Canada House Price Index (HPI).
In particular, the National Composite HPI registered a monthly increase of 0.7% in May 2009 after falling 0.4% in the April. However, home prices were down 4.4% compared to December 2008.
Home price changes varied considerably across Canada's major metropolitan markets. As the graph below shows, in May 2009, home prices increased in four out of the six metropolitan areas covered by the index, while they declined in the remaining two.
Toronto's housing market registered the best performance among the six markets, as the area's HPI increased 2% in May after falling 0.6% in April. Montreal was the second best performer, as home prices increased by 1.5% following also an increase of 0.2% in April. Halifax registered the best performance on a two-month basis as home prices increased 1.4% in April and 1.3% in May. Ottawa's housing market registered also a positive performance as home prices increased 0.7% in May after dropping 0.5% in April.
Canada House Price Changes, April and May 2009
Sources:Teranet and National Bank of Canada, Property-Investing.Org
On an annual basis, the housing markets of Montreal and Halifax were in the best shape in May 2009, as home prices were above their May 2008 level by 2.3% and 1%, respectively. Ottawa housing prices were only 0.6% below their May 2008 level. These markets clearly outperformed national market performance as Canada home prices dropped 6.9% on average in the twelve months to May 2009.
The Calgary and Vancouver housing markets registered the worst by far performance on an annual basis, as home prices declined 12.2% and 11.8%, respectively, during the period May 2008-May 2009. Toronto home prices were down 6.5% during the same period.
Canada Home Price Changes in Major Markets, May 2008-May 2009
Sources:Teranet and National Bank of Canada, Property-Investing.Org
The Halifax and Montreal housing markets may be entering a stabilization phase as home prices were stable or rising in the three months to May. However, due to the considerable economic uncertainty it remains to be seen whether these trends are sustainable.
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