What happened: House prices across the country rose more slowly in June while repeat home sales plummeted, according to the latest Teranet-National Bank National Composite House Price Index.
Why it matters: The data confirms a national housing market slowdown due to the COVID-19 pandemic, according to the report.
Canada's housing market continued to cool in June as a result of the COVID-19 pandemic.
While home prices rose month-to-month and year-over-year, they increased more slowly, according to the latest Teranet-National Bank National Composite House Price Index, which tracks over time the registered prices of home that have been sold at least twice.
The index rose 0.7% from May to June – the lowest June advance in 17 years. Year-over-year, the index increased by nearly 6% – a slight deceleration.
Repeat home sales also fell by 24% year-over-year in the wake of measures imposed to slow the spread of COVID-19.
Compared with June 2019, the composite house price indices for the Vancouver, Victoria, Abbotsford-Mission and Kelowna markets rose. All remain below their housing market peaks with the exception of Victoria, which saw its peak last month.
While the report says the overall data confirms a national housing market slowdown, economists believe it also suggests the market has proven resilient.
"Although the relationship between the ratio and house prices has loosened since the mortgage stress tests were imposed in 2018, the ratio suggests house prices are unlikely to fall," wrote economists at Capital Economics.
"The most recent data suggest the housing market has proved far more resilient than we initially feared."
