UPDATE 1-Canada home prices edge higher in October from September

Thu Nov 12, 2015 9:38am EST
 
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(Adds regional details)

TORONTO Nov 12 (Reuters) - Canadian home prices rose in October from September, their 10th straight increase, but a wide gap remained between Canada's hot markets and cities hit by a sluggish economy, the Teranet-National Bank Composite House Price Index showed on Thursday.

The index, which measures price changes for repeat sales of single-family houses, showed national home prices rose 0.1 percent last month from September and increased 5.6 percent from a year earlier.

Only five of the 11 cities surveyed showed price increases in October from September, with Toronto and Vancouver maintaining their perpetual lead.

Vancouver prices rose 0.6 percent, notching the city's 10th month without a loss. In Toronto, prices rose 0.3 percent in the eighth straight month without a decline.

Prices were up 0.2 percent in Edmonton, 0.3 percent in Victoria and 1.9 percent in Winnipeg from September. But they fell 0.8 percent in Calgary, 1.7 percent in Halifax, 0.3 percent in Hamilton and Montreal, 0.6 percent in Ottawa and 0.2 percent in Quebec City.

Canadian home sales and prices have been rising since 2009, but the market has shown increasingly regional disparity. While Toronto and Vancouver have roared on, a prolonged slump in oil and commodity prices has hit many cities hard, especially those in resource-dependent Western Canada.

Analysts have long expected the market to cool and prices to fall, but they are divided over whether there will be a soft landing or a crash.

Comparing year-earlier prices, the Teranet report showed gains of 9.8 percent in Vancouver and 9.3 percent in Toronto. Prices were also up by 9.3 percent in Hamilton, 1.4 percent in Edmonton and 6.4 percent in Victoria.

Prices in the energy capital of Calgary were down 1.0 percent from October 2014, when they peaked. Prices were also down 1.1 percent in Halifax, 0.6 percent in Montreal and 3.2 percent in Quebec City.

Winnipeg and Ottawa prices were flat from a year earlier. (Reporting by Andrea Hopkins and Jeffrey Hodgson; Editing by Lisa Von Ahn)