Home prices in small cities outside Toronto have skyrocketed by up to 30% from year ago


OTTAWA — Canadian home prices accelerated sharply in April from March, as indexes rose in all 11 major markets for the second consecutive month, data showed on Wednesday.

The Teranet-National Bank Composite House Price Index, which tracks repeat sales of single-family homes, rose 2.4 per cent in April from March. That was a marked increase from the gain of 1.5 per cent in the previous month.

On an annual basis, the Teranet index was up 11.9 per cent from a year earlier, the strongest 12-month gain since August 2017. Halifax, Nova Scotia, led the year-over-year gains, at 26.8 per cent, followed by Hamilton, Ontario, at 22.9 per cent and the national capital region of Ottawa-Gatineau at 19.5 per cent.

Housing price gains in smaller cities outside Toronto and its immediate suburbs again outpaced the major urban centers, with cities like Barrie, Guelph and Kitchener posting annual gains in the range of 23.8 per cent to 27.9 per cent.

On a month-over-month basis, prices rose 5.4 per cent in Halifax and 3.0 per cent in Toronto, with Victoria, British Columbia, Ottawa-Gatineau and Hamilton all up 2.8 per cent. Gains in the other major markets ranged from 0.4 per cent to 2.0 per cent.

By contrast, data earlier this week from Canada’s realtors showed prices and sales dropped in April compared with March, as some of the frenzy of recent months began to subside. Housing starts also fell in April.