Ottawa -- Canada's most recent Multiple Listing Service (MLS) Home Price Index showed a slight overall increase in home prices in the country's major real estate markets in January. The MLS Home Price Index is published monthly by the Canadian Real Estate Association (CREA) in association with The Altus Group. It tracks home sale prices in five urban markets: Greater Vancouver, Fraser Valley, Calgary, Toronto and Greater Montreal.
According to the latest Home Price Index, overall home prices rose by an average of 0.27 per cent in January in the five markets tracked. That represents a slight rebound from an overall average decline in home prices in those markets in December (-0.2 per cent) and November (-0.07 per cent). Rising home prices are generally indicative of increasing demand in resale homes, which in turn has an effect on the purchase of home improvement products.
On a market-by-market basis, home prices rose 0.68 per cent in Montreal in January, 0.28 per cent in Toronto and 0.06 per cent in Greater Vancouver. Negative pressure on the overall increase came from the Fraser Valley market, where home prices dropped -0.14 per cent in January, and Calgary, where prices were down -0.12 per cent for the month.
"While home prices remain up compared to one year ago, price growth from one month to the next has been slowing, causing year-over-year gains to shrink, and prices are generally expected to continue to stabilize this year," said Gary Morse, CREA President. "That said, many parts of the country could continue to see gains, while others may see home prices soften."
Prices were up for both one- and two-storey single-family homes in January, rising 0.47 per cent and 0.53 per cent respectively. On a year-over-year basis, home prices in all five major markets tracked by the CREA were up in January, led by the Toronto market with a 7.6 per cent price increase.