Home prices in Vancouver fell in June compared with the previous month while Canada experienced its second smallest month-to-month increase in a decade, according to the Teranet–National Bank Composite House Price Index (HPI).
The July 14 data shows home prices in Metro Vancouver dropped 1% from May to June.
Last month, HPI data showed a 0.03% drop in the region’s home prices during May following 12 consecutive months of increases.
Year-over-year, however, Metro Vancouver home prices were up 6.1%.
Countrywide, the HPI was up 0.9% compared with May, making it the second smallest June increase in 10 years.
Randall Bartlett, senior economist at TD Bank Group, said in a note to clients the slowdown in price growth across Canada could be an indication the housing market is becoming more balanced.
“We expect to see the cooling trend continue through the end of 2015,” he said.
“This view is premised on rising prices encouraging strong growth in new listings while the number of newly completed housing units remain elevated, both of which will boost supply and weigh on prices. At the same time, interest rates are likely to grind higher in Canada, resulting in reduced affordability.”