Wednesday, September 21, 2022
HomeWealth ManagementRecord drop for Canadian home price index in August

Record drop for Canadian home price index in August


The HPI’s previous biggest fall was in July 2010 (1.3%) but last month’s data was exceptional as all but three of the CMAs surveyed posted a decline.

The index peaked in May 2022 and is down more than 4% since with Hamilton (-10.5%), Halifax (-8.7%), and Toronto (-8.3%) the biggest drags.

The monthly declines were led by Hamilton (-5.4%), Ottawa-Gatineau (-3.8%), Halifax (-3.6%) and Toronto (-3.5%), with gains for Calgary (+1.3%), Edmonton (+2.8%), and Lethbridge, which is not covered in the composite CMA (+2.6%).

Analysts at the index expect it to be 10-15% lower than its peak by the end of 2023, assuming a peak 4% policy rate from the Bank of Canada which is reduced in the second half of next year.

A recent RE/MAX Canada report shows that there are still pockets of price gains even within wider market declines.

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