Richard Buchan/The Canadian Press
Canadian home prices rose 0.8 per cent in June from the prior month, thanks to a seasonal boost, but the increase was lower than the 21-year average, data showed on Thursday.
The Teranet-National Bank Composite House Price Index measures changes for repeat sales of single-family homes. A 0.5-per-cent gain in May was the first since August, 2018.
Both May and June’s gains were weaker than the 21-year averages. June’s 21-year average was 1.2 per cent.
“The last two monthly readings cannot be taken as a sign of market vigour,” said Marc Pinsonneault, a senior economist at National Bank of Canada.
If seasonal pressures were removed, the composite index would have declined by 0.4 per cent in May and 0.5 per cent in June. The annual gain in June, at 0.5 per cent, was the smallest seen since November, 2009.
Price declines were seen in several Western Canadian markets.
Vancouver recorded its 11th straight month without a gain. In oil-rich Alberta, Calgary recorded its 11th month out of 12 without a rise while Edmonton saw a flat month.
“These readings are consistent with signals from other indicators of soft resale markets in those metropolitan areas,” Mr. Pinsonneault said.
In Eastern Canada, Toronto, Hamilton and Ottawa recorded a third consecutive month of gains, while Montreal recorded an increase of 0.8 per cent – the 13th index rise in 15 months.
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