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A for-sale sign outside condos overlooking the skyline in the Fairview neighbourhood of Vancouver, March 4, 2013. (Rafal Gerszak for The Globe and Mail)
A for-sale sign outside condos overlooking the skyline in the Fairview neighbourhood of Vancouver, March 4, 2013. (Rafal Gerszak for The Globe and Mail)

OFF THE CHART

Toronto, Vancouver home prices may ‘edge dangerously higher’ Add to ...

Canadian home prices hit a new high last month – even as many of the country’s markets cooled off.

Prices rose 5.1 per cent in June from a year earlier, according to the Teranet-National Bank home price index, released Tuesday. While the index climbed to a record level, only three markets – Vancouver, Toronto and Hamilton – reached their own peaks. Home prices in Vancouver rose 8.5 per cent from a year ago, while prices in Toronto and Hamilton increased 7.8 per cent and 5.5 per cent, respectively. In a sub-index of eight other metropolitan areas, prices nudged 1 per cent higher.

“With residential mortgage rates likely to edge lower in the months ahead on a potential 25-basis-point rate cut from the Bank of Canada [Wednesday], we wouldn’t be surprised to see house prices edge dangerously higher in Toronto and Vancouver over the near-term,” said David Madani of Capital Economics in a note following the Teranet release.


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