Canadian home prices grew by 0.4 per cent in November from October, pushed up by a limited supply of homes for sale and buyers seeking to act ahead of anticipated rate hikes, data showed on Friday.
The Teranet-National Bank Composite House Price Index, which tracks repeat sales of single-family homes in 11 major Canadian markets, had remained unchanged in October over September.
“With the recent increase in mortgage interest rates and the anticipated increases next year, some people who secured advantageous interest rates have probably brought forward transactions,” Daren King, an economist at National Bank of Canada, said in a statement.
“In addition, the lack of supply on the market is certainly putting upward pressure on prices, which should continue in the short term,” he said.
Seven of the 11 major markets rose, led by a 1.2 per cent gain in Halifax, Nova Scotia. Prices were flat in Winnipeg and Montreal and fell in Edmonton and Ottawa-Gatineau.
On an annual basis, the index rose by 15.2 per cent, decelerating for the third consecutive month after it notched record annual growth in August. Halifax led the annual index with a 29.8 per cent increase, while Hamilton registered a 24.9 per cent gain.
Canada’s real estate agents on Wednesday reported higher home sales and prices in November from October, with buyer demand outpacing available supply.
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