Teranet National Bank Canadian House Price Index Rises 5.4% in August Due to Hot Market

CBC reports that for the past 6 successive months the price index has been high in 11 cities in Canada. The top 3 cities that have higher house price index are Vancouver, Toronto and Hamilton, records show that the figures are considered at "historical highs."

In Vancouver, the price index of the housing has gone up to "9.7% and 0.9 per cent on the month." The increase may not "as big a jump as the Greater Vancouver Real Estate Board reported for August, in part because the sale of new properties is not included in the Teranet price."

As for Toronto and Hamilton, figures show that the increase is 8.7 per cent for the year and 8.8%, respectively. According to the report, the housing market in Hamilton is pushed higher by proximity to Toronto. Residents of Toronto who are priced out are looking for cheaper property in the place.

The Globe And Mail states that the report of Teranet-National Bank shows that the prices have rose 1% from the month up July, and 5.4% since last year. Aside from Vancouver, Toronto and Hamilton, the prices of Calgary have run up 3.9% monthly gain. But in Edmonton, the home prices have gone down at 0.5%.

Marc Pinsonneault of National Bank said that the dichotomy of residential real estate market in Canada has been so apparent than it has ever been.

"On one side, 12-month price increases over 8 per cent in Vancouver, Toronto and Hamilton have pushed the Teranet-National Bank national composite index to a near record in August for a sixth consecutive month," Pinsonneault added.

However, Pinsonneault also mentioned that in some parts of Canada, the prices have barely increased by 0.2%.

Despite the fact that Teranet National Bank Canadian house price index has increased 5.4% in August, report also mentioned that other regions don't have the hot market like in Vancouver, Toronto and Hamilton. So overall, as mentioned by CBC that the housing market in Canada is very uneven.