The latest edition of the Teranet – National Bank of Canada House Price Index (TNB HPI) indicated that the annual growth rate of national real estate prices is at its lowest level in a decade.
In July, the Index was at a vanishingly low 0.44% year-over-year growth, along with a 0.72% increase from the month prior.
“The 12 month growth has been trending lower, and is now at the lowest it has been since 2009,” Better Dwelling stated in its analysis of the numbers. “The growth is below normal, and due entirely to seasonal pressure.”
The 0.72% monthly growth is considerably lower than the 21-year average of 1%.
Much of the weakness stemmed from Greater Vancouver, which the Better Dwelling analysis deemed as the worst in the nation so far. The market suffered a 6.23% year-over-year price drop in July, along with a 1.04% loss month-over-month.
“Since July 2018 was the peak, it’s also how much prices have fallen from peak. The market is now at the same price level experienced in September 2017.”
Fortunately, the Greater Toronto Area injected substantial strength as rapid recovery is moving it ever-closer to its former peak. GTA prices grew by 3.24% annually and 1.26% monthly in July, placing prices at a mere 0.90% from their record high.
Greater Montreal posted even better performance, reaching a new all-time high with its 5.80% year-over-year growth rate in July. The same month was also 1.69% higher than the market’s June readings.