House prices rise in Montreal, Toronto and Vancouver
CBC News
Posted: Feb 6, 2012 2:37 PM ET
Last Updated: Feb 6, 2012 3:41 PM ET
The Canadian Real Estate Association's home price index rose in January following declines in each of the two previous months. (Nathan Denette/Canadian Press)
Related
Price increases in three major Canadian housing markets pushed the Canadian Real Estate Association's home price index higher in January following declines in each of the two previous months.
The index rose 0.27 per cent from December, driven by stronger results in Montreal, Toronto and Vancouver.
The gains were offset by softer sales in Calgary and B.C.'s Fraser Valley region, the other two markets that make up the index.
But nonetheless, the index remains up from year-ago levels in all five of the markets tracked — led by Toronto, which was up 7.6 per cent.
It's the first time CREA has released what it's calling the MLS Home Price Index, the agency's latest attempt to track what's happening in the housing market.
"Changes in average and median home prices are open to misinterpretation, since they can swing dramatically based changes in the mix of home sales," CREA's chief economist Gregory Klump said. "The MLS HPI overcomes this shortcoming, and does a better job of tracking Canadian home price trends than any other measure."
"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," CREA president Gary Morse said in a statement.
RBC hikes 5-year fixed rate
The gain came as the Royal Bank increased its posted rate for a five-year fixed rate mortgage.
The country's largest bank nudged the rate up by 0.10 percentage points to 5.24 per cent.
Mortgage rates have lingered near record lows in recent years.
The Bank of Canada has repeatedly cautioned prospective buyers to guard against being lured by low mortgage costs because interest rates and therefore monthly payments, will eventually increase as the economy gets stronger.
The home price index tracks prices relative to a base period for one- and two-storey single family homes, townhouses and apartments.
The index is up 5.2 per cent from year-ago levels with gains in all five of the markets tracked, led by Toronto which is up 7.6 per cent.
With files from Canadian PressShare Tools
Top News Headlines
- Canadian Pacific strikers face back-to-work legislation
- Labour Minister Lisa Raitt is prepared to end the Canadian Pacific Railway strike if necessary, after both CP and the union rejected a proposal for voluntary arbitration by the government-appointed negotiator on Sunday. Raitt says she is "extremely disappointed." more »
- Syrian regime denies role in Houla massacre
- The UN Security Council condemned the Syrian regime at an emergency meeting Sunday, holding president Bashar al-Assad's military responsible for the massacre of more than 100 people, dozens of whom were children younger than 10 years old. more »
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria, B.C., native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Neighbour may have helped find missing kids in Mexico
- Two Winnipeg children who had been missing for nearly four years were found in Mexico after a man raised concerns about his neighbour, according to a private investigator. more »
Latest Business Headlines
- Bankia asks Spain for €19B
- The board of directors of Spain's troubled bank, Bankia, has asked the Spanish government for €19 billion ($24.5 billion Cdn) in financial support. more »
- EI reforms aim to boost employment, Flaherty says
- Finance Minister Jim Flaherty defended his government's proposals to change employment insurance, saying the aim is to remove "disincentives to employment." more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Ottawa moves to limit foreign investment reviews
- The federal government is raising to $1 billion the amount of foreign money that can go into a Canadian company before the investment is reviewed. The review has been used in the past to block foreign takeovers of MDA and Potash Corp. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 11576.47 | 10.4 |
| DOW | 12454.83 | -74.92 |
| NASDAQ | 2837.53 | -1.85 |
| SP 500 | 1317.82 | -2.86 |
| NYSE COMPOSITE | 7534.32 | -18.01 |
| AMEX | 2227.37 | 1.45 |
| TSX-VENTURE | 1309.27 | 26.8 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Accused in blast that killed Alberta mom handled her funds
- Remains found in bag on Cape Breton river ID'd
- Neighbour may have helped find missing kids in Mexico
- Quebec students, government to resume talks
- Syrian regime denies role in Houla massacre
- Lip-dub marriage proposal an internet hit
- Canadian Pacific strikers face back-to-work legislation
- B.C. NDP calls for unity in fighting coast guard closure
- Calgary Marathon winner breaks 21-year-old record
