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Record annual decline in the Teranet-National Bank HPI in March

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The Teranet-National Bank Composite Home Price Index (HPI) recorded a 6.9 per cent year-over-year decline from March 2022 to March 2023, marking a slightly worse contraction than the previous record set during the 2008-2009 financial crisis. 

The index covers eleven Canadian metropolitan areas, and while three cities saw an increase in prices, eight recorded price declines.




Calgary led the way with a 7.6 per cent year-over-year price increase, followed by Quebec City with a 4.1 per cent gain, and Edmonton with a 2.2 per cent increase. On the other hand, Hamilton, Toronto, and Victoria recorded the most significant price declines, with drops of 13.5 per cent, 12.1 per cent, and 8.7 per cent, respectively.

In addition to the eleven metropolitan areas covered by the index, it also provides data on 20 other Canadian cities not included in the composite index. Of the 20 cities, seven recorded annual gains, with Trois-Rivières registering an 18.8 per cent increase, while Abbotsford-Mission, Oshawa, Peterborough, and Guelph all experienced double-digit price declines.

It’s important to note the Teranet-National Bank Composite HPI is based on closed transactions—so it typically lags behind the market.


Source: Teranet-National Bank Composite Home Price Index



Monthly changes in the Teranet-National Bank Composite HPI also showed a mixed picture. After adjusting for seasonal effects, the index decreased by 0.8 per cent from February to March, marking the ninth consecutive monthly decline. 

However, before seasonal adjustments, the index increased by 0.5 per cent over the same period, indicating a slight recovery in housing prices.

In March, seven of the eleven metropolitan areas recorded monthly price declines, with Victoria, Winnipeg, and Toronto experiencing the most significant drops. 

On the other hand, Halifax, Montreal, Vancouver, and Calgary recorded price increases. 

Outside the composite index, twelve of the 20 cities recorded monthly price declines.

Read the full March report here.


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