Affordability has been the key condition for housing market resilience in Canadian cities, National Bank says. (R.J. Johnston/Toronto Star via Getty Images) · R.J. Johnston via Getty Images
New data released this morning show potential signs of life in the housing market, with the Teranet-National Bank House Price Index edging up for the first time in eight months. But economist Daren King writes that even with further BoC cuts expected, it’s “still too early to say whether this trend will continue in the months ahead.”
“Continuing uncertainty, moderating population growth, the risk of persistently high long-term interest rates, and a potentially further deterioration in the labour market will continue to weigh on the housing market,” he notes.
The index, which looks at price changes on sales of the same properties over time, rose 0.4 per cent in August, with prices up slightly in Winnipeg, Hamilton, Toronto, Ottawa-Gatineau and Halifax. Since the end of last year, the national index is still down 4.6 per cent. “Against the backdrop of the current trade dispute, market resilience has depended on differing levels of affordability,” King writes.