Housing prices look to be stabilizing: StatsCan

Reports out Thursday morning shows Canadian home prices rose in June from May, pushing prices just barely above their 2017 peak, while new home prices were flat again in May, which appeared to show a housing market swoon may be stabilizing.

The Teranet-National Bank Composite House Price Index, which measures changes for repeat sales of single-family homes, showed prices increased 0.9% on a monthly basis as prices rose in 10 of the 11 markets surveyed..

Teranet went on to say June's gain was the third-smallest gain in the traditionally strong month in the last 14 years.

Canada's once-blazing housing market has softened in the wake of rule changes that tightened mortgage lending, a foreign buyers tax, and four interest rate hikes by the Bank of Canada since July 2017, though the condo markets in both Toronto and Vancouver have remained robust.

The central bank said on Wednesday housing markets may have begun to stabilize after a weak start to 2018.

Price gains continued to decelerate on an annual basis, up 2.9% from June 2017.

Prices in Toronto were up 1.2% on a monthly basis but still down 4.8% from their peak in July 2017.

Vancouver prices gained 0.6%, taking the index to a new record.

A separate report from Statistics Canada showed new home prices were unchanged in May for a third straight month, with Toronto and Vancouver both flat.

Prices were unchanged or declined in 15 of the 27 metropolitan areas surveyed.

Compared to a year ago, new house prices were up 0.9% in May, the smallest increase since February 2010.

The new housing price index excludes apartments and condominiums, which have seen robust sales in big cities and account for one-third of new housing.