Canada May Teranet house price index +6.0% y/y vs +5.3% prior
House price data from Teranet and National Bank
- Prior was +5.3%
- Prices up 1.1% m/m vs +1.3% prior
This certainly isn't the house-price decline that the CMHC forecast but Teranet does warn about weakening underlying metrics:
A dive beneath the numbers brings up two signs that the underlying data have begun to reflect the slowing of the housing market in the wake of actions taken to stem the spread of Covid-19. First, the number of repeat sales used to derive indexes was down 22% from a year earlier, the largest 12-month decrease since April 2013. This suggests that the slowing of unit sales that began in the second half of March was reflected in the public land registries. Second, the raw composite index for May after correction for seasonal fluctuations (seasonal adjustment) was up only 0.2% on the month, a very marked slowing from the previous three months. The raw index was down or flat in five of the 11 markets of the national composite index.