House prices continue to deflate in Canada. They fell 5.8% during the 12 months to March, according to the TeranetNational Bank National Composite House Price Index. Last month the 12-month decline was 4.1%. Calgary is no longer leading the trend downward. That honour now belongs to Vancouver, which dropped 9.6%. Next came Calgary (?8.4%), Toronto (?6.9%) and Halifax (?0.8%). Just two cities managed to stay in positive territory: Montreal (2.9%) and Ottawa (1.0%). All cities in the index are down from their peak levels. Calgary, Vancouver and Toronto are off their peaks by more than 10%. This is beginning to look like a U.S.-style retrenchment — only with a lag of 12 to 18 months. For more detail, see the charts ( from housepriceindex.ca)below. Much has been made of the resiliency of Canadian banks in the midst of the global financial meltdown. But was it, in part, based on a delayed tumble in house prices? Now that the Canadian market is beginning to resemble the U.S. market, will Canadian banks be able to keep a stiff upper lip? National level
0
St. Joseph Communications uses cookies for personalization, to customize its online advertisements, and for other purposes. Learn more or change your cookie preferences. By continuing to use our service, you agree to our use of cookies.
We use cookies (why?) You can change cookie preferences. Continued site use signifies consent.
Blogs & Comment
Falling house prices and banks
By Larry MacDonald
House prices continue to deflate in Canada. They fell 5.8% during the 12 months to March, according to the TeranetNational Bank National Composite House Price Index. Last month the 12-month decline was 4.1%.
Calgary is no longer leading the trend downward. That honour now belongs to Vancouver, which dropped 9.6%. Next came Calgary (?8.4%), Toronto (?6.9%) and Halifax (?0.8%). Just two cities managed to stay in positive territory: Montreal (2.9%) and Ottawa (1.0%).
All cities in the index are down from their peak levels. Calgary, Vancouver and Toronto are off their peaks by more than 10%. This is beginning to look like a U.S.-style retrenchment — only with a lag of 12 to 18 months. For more detail, see the charts ( from housepriceindex.ca)below.
Much has been made of the resiliency of Canadian banks in the midst of the global financial meltdown. But was it, in part, based on a delayed tumble in house prices? Now that the Canadian market is beginning to resemble the U.S. market, will Canadian banks be able to keep a stiff upper lip?
National level