As interest rates continue to weigh heavily on the minds and purchasing power of many Canadians, national home prices continued on a downward trajectory in November, marking a fifth straight month of decline.

This is according to the latest Teranet-National Bank Composite House Price Index, released yesterday, which tracks observed or registered home prices across 11 CMAs: Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Toronto, Ottawa-Gatineau, Montreal, Quebec City, and Halifax. All properties that have been sold at least twice are considered in the calculation of the index.

Canadian House PriceTeranet and National Bank of Canada

Teranet’s data for November shows that, before seasonal adjustment, the national composite index fell 1.3% from October to November. November’s decline was significantly greater than the 0.8% dip observed in October -- however, it was nowhere near the record-breaking drop of 3.1% observed in September. After seasonal adjustment, the index declined by 1.1%.

Of the 11 CMAs examined, eight saw their indexes fall on a month-over-month basis. The declines were the steepest in Montréal (-2.2%), Hamilton (-1.9%), and Vancouver (-1.5%). Additionally, price declines were observed in 13 of the 20 CMAs not included in the composite index, with the greatest drops recorded in Kelowna (-4.7%), Trois-Rivières (-4.0%), and Guelph (-2.4%).

On the flip side, Halifax, Victoria, and Edmonton saw their indexes grow in November, increasing 1.6%, 0.9%, and 0.3%, respectively. Of the CMAs not included in the index, Belleville, Peterborough, and St. Catharines saw 5.9%, 3.5%, and 2.5% increases, respectively. The report also notes that Belleville and St. Catharines both saw declines of 6.8% and 4.9% in October.

READ: Majority of Canadian Housing Markets Now Considered ‘Balanced’

On a year-over-year basis, the national composite index saw an increase of 2% in November. November’s gain was the seventh straight month where the rate of growth was lower than the month prior, and the slowest annual growth on record since November 2019. Calgary saw the most significant annual growth, at 14.6%, followed by Edmonton, at 7.6%, and Halifax, at 6.2%. Positive annual gains were observed in 12 of the 20 CMAs not included in the index, with Trois-Rivières and Sherbrooke seeing the strongest annual gains, at 12.3% and 11.0%.

Meanwhile, the index held steady in Toronto and fell by 0.9% in Hamilton. Oshawa, Windsor, and Kitchener -- which were not included in the index -- saw annual declines of 2.9%, 2.4%, and 2.0%, respectively.

Real Estate News