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Teranet - National Bank House Price Index

This morning from TBNHPI:

Canadian home prices in April were up 1.1% from the previous month, according to the Teranet–National Bank National Composite House Price Index™. That rise took the index to a record 140.47 (June 2005 = 100). The April increase was the largest of five consecutive monthly rises following three straight monthly declines. For the first time in 10 months, prices rose in all six of the metropolitan markets surveyed. The gain was 1.8% in Vancouver, 1.4% in Ottawa, 1.0% in Montreal, 0.8% in Halifax, 0.7% in Toronto and 0.6% in Calgary. For Calgary it was only the second monthly rise in nine months. Vancouver extended its string of monthly increases to seven, the longest run among the six markets.
As if further proof was required, April saw the single largest increase in Canadian house prices.  Bottom line Canadian housing is "on fire".  On a year of year basis house price rose faster than inflation.  Any clearer signal needed, that inflation is a problem?  

BTW this occured at the same time as Canada CMHC (equivalent to US government agencies) reduced the term of loan and increased the minimum deposit required on their insured housing loans.


Actually, April was the last month of CMHC's higher borrowing amount and longer term, which may partially explain the "rush to beat the deadline.."  May will see what happens and if the April rise was driven by CMHC changed borrowing requirements.

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