TORONTO (Reuters) - Canadian home prices rose by 2.3 percent in June from a month earlier, the Teranet-National Bank Composite House Price Index showed on Wednesday, the largest increase during the month since the index began in 1999.
The index, which measures price changes for repeat sales of single-family homes, showed prices were up 10 percent from a year earlier, providing further evidence of rapid price increases in some parts of Canada.
Prices in the major cities of Vancouver and Toronto have risen sharply in recent years, boosted in part by foreign investment, while oil producing regions such as Alberta have been held back by the falling oil price and rising unemployment.
Prices were up in ten of the 11 metropolitan markets covered in the survey, led by a 4.4 percent rises in Victoria, 3.7 percent in Halifax, 3.3 percent in Toronto and 2.6 percent in Vancouver. Prices have risen in Vancouver for 18 consecutive months, according to the survey, while Toronto has seen rises in 13 of the last 14 months.
Alberta saw a contrasting performance with prices rising by a modest 0.2 percent in Calgary and falling by 0.3 percent in Edmonton, the index showed.
Canada’s banking regulator said last week it was tightening oversight of mortgage lending in the latest sign of the concerns of Canadian authorities about soaring home prices in markets like Vancouver and Toronto.
Reporting by Alastair Sharp; Editing by Matt Scuffham and Chizu Nomiyama