Home prices post record February increase: Teranet-National Bank index

TORONTO — Canadian home prices posted a record jump for the month of February, fuelled by the Toronto, Hamilton and Vancouver markets.

The Teranet-National Bank national composite house price index gained 1.0 per cent for the month, the largest February increase in the 18-year history of the index.

Toronto soared a record 1.9 per cent, while Hamilton gained 1.4 per cent, also a record increase. Vancouver added 1.4 per cent.

However the story wasn’t the same across the country as seven of the 11 major cities tracked posted a drop for February. Halifax slipped 1.9 per cent, while Calgary fell 1.3 per cent.

Compared with a year earlier, the index was up 13.4 per cent, the largest 12-month increase since 2006.

The year-over-year jump was due to a record 23.0 per cent increase in Toronto and a 19.7 per cent gain in Hamilton, also a record.

National Bank senior economist Marc Pinsonneault said the Toronto market was “especially worrisome.”

“In a city where apartments account for only 26 per cent of home sales, affordability of other types of dwellings has become an acute problem,” he wrote in a note.

However, he noted that there are regional differences.

“In order to accurately assess the Canadian home resale market, it is essential to recognize the dichotomy between markets like Toronto, Hamilton and Victoria, where price growth is in the double digits, and other markets where the progression of home prices has been much more moderate, if not negative,” Pinsonneault wrote.

A red-hot housing market in Toronto has raised concerns in recent months and prompted talk about a foreign buyers tax like the one instituted in Vancouver.

The B.C. government brought in a 15 per cent tax on foreign buyers last August.

Prices in Vancouver, while up in February compared with a year ago, are off their highs set in September as measured by the Teranet-National Bank index. The number of sales in the city has also decreased.

The price index came one day ahead of the latest home sales figures from the Canadian Real Estate Association expected Wednesday.

Just Posted

Police is still looking for Second World War army passport owner

No one has claimed a rare Second World War German army passport… Continue reading

Castor murderer denies he’s a killer

Jason Klaus tells courtroom he loved his family who were murdered in December 2013

Advocate poll shows another hospital wanted in Red Deer

Over 50 per cent of voters support second hospital

WATCH news on the go: Replay Red Deer Jan. 21

Watch news highlights from Red Deer and Central Alberta

RDC chosen to host 2019 men’s volleyball national championship

Sports enthusiasts in Red Deer will have more to look forward to… Continue reading

Police is still looking for Second World War army passport owner

No one has claimed a rare Second World War German army passport… Continue reading

DJ Sabatoge and TR3 Band kick off Sylvan Lake’s Winterfest 2018

Central Alberta’s youngest DJ will open for TR3 Band kicking off Town… Continue reading

Two Canadians, two Americans abducted in Nigeria are freed

Kidnapping for ransom is common in Nigeria, especially on the Kaduna to Abuja highway

WATCH news on the go: Replay Red Deer Jan. 21

Watch news highlights from Red Deer and Central Alberta

Liberals quietly tap experts to write new paternity leave rules

Ideas include creating an entirely new leave benefit similar to one that exists in Quebec

Insurers say Canadian weather getting hotter, wetter and weirder

Average number of days with heavy rain or snow across Canada has been outside norm since spring 2013

Are you ready for some wrestling? WWE’s ‘Raw’ marks 25 years

WWE flagship show is set to mark its 25th anniversary on Monday

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month