By Ketki Saxena
Investing.com – The Teranet–National Bank National Composite House Price Index showed that Canadian home prices fell 0.3% in February from January, as prices dropped in seven of the 11 major markets. The increase compared to a 1.1% decrease recorded in January over December.
The monthly decline was led by price drops in Toronto and Calgary. Prices continued in the British Columbian cities of Vancouver and Victoria.
Home prices fell by 4.7% in February compared to February 2022.
The Teranet Index tracks repeat sales of single-family homes in eleven major Canadian markets, and typically lags realtor sales data by three to five months.
A separate index, the MLS Home Price Index as measured by the Canadian Real Estate Association showed that national home prices dropped 1.1% in February month over month, the smallest month-to-month decline since last March.
The index, which measures home prices across Canada not just in the major metropolitans, remains down 15.8% year-over-year.
Canadian home prices have slid last year as the Bank of Canada raised interest rates from 0.25% to their current level of 4.5%.
However, with the Bank of Canada now on a conditional pause, analysts expect a rebound in the Canadian housing market this spring.
Shaun Cathcart, CREA’s Senior Economist noted, “Future sellers, many of whom will also be buyers, are likely biding their time until the optimum time to list and buy something else. For most, that’s in the spring. Will buyers jump off the fence to snap homes up in 2023 once they finally start to hit the market? They did in 2019."