Technology Canadian House Prices Have Recovered Their Losses From The Slump, Index Shows

20:26  12 july  2018
20:26  12 july  2018 Source:   huffingtonpost.ca

Energy, pot stocks pull Toronto market lower

  Energy, pot stocks pull Toronto market lower Canada's main stock index closed in the red as a drop in crude prices pushed energy stocks lower, while U.S. stocks were mixed. The August crude contract fell $2.95 or 4.15 per cent to close at US$68.06 after U.S. officials toned down threats against countries and businesses who buy Iranian oil.Treasury Secretary Steven Mnuchin and Secretary of State Mike Pompeo said those who import Iranian oil after sanctions return in November could avoid penalties if they reduce those imports significantly, rather than cut off the trade entirely.

The comments came as a survey this week showed that house prices in prime parts of London had tumbled deeply over the past year, with Wandsworth – which includes much of Clapham, Balham and Putney – falling nearly 15%.

Property prices across the States shot up, as speculative cash poured into housing , and homebuyers stretched themselves to the very limits of their borrowing power. According to the closely watched Case-Shiller index , which tracks repeat sales of the same property, the average price of a US home

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All the new headwinds facing Canada's homebuyers — from tough new mortgage "stress tests" and foreign buyers' taxes to rising interest rates — haven't stopped house prices from returning to growth.

The latest edition of the Teranet/National Bank house price index shows home prices have recovered from a slump that began in the middle of last year, and are now 2.9 per cent higher than they were a year ago.

Ten of the 11 cities measured by the index showed a rise in prices in June, with Winnipeg prices dropping one per cent during the month.

"Does this mean that the Canadian home resale market is about to enter into a new frenzy? No," National Bank economist Marc Pinsonneault wrote in a report accompanying the index Thursday.

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  Toronto stocks close lower, loonie up Canada's main stock index closed lower on a day that saw big swings in the oil price while U.S. stocks were down on a shortened trading day ahead of the U.S. July 4 holiday. Oil was initially trading higher Tuesday, cresting US$75 a barrel for the first time since 2014 before it fell after comments by Saudi Arabia about increasing production, said Craig Jerusalim, portfolio manager at CIBC Asset Management."There were indications they had agreed to pump more oil. There had been some soft pressures from the U.S. in the form of tweets suggesting that that's a direction they wanted them to go.

On average, American home prices have recovered nearly all their losses from the 2006 crash, but when adjusted for inflation they are still 20% below the 2006 peak. • House - price index : rebased to 100 at a selected date and in nominal terms • Prices in real terms: prices in $'000 at 2015 prices

Key events. Show . Britain’s FTSE 100 endured its biggest slump since the Brexit vote, falling by 193 points or 2.6% -- wiping £50bn off the index . Asian markets also tumbled on Tuesday -- but there are signs that they will recover in the upcoming trading session.

"June's rise in the index, impressive at first sight, was in fact weak for this time of the year."

According to an analysis from Capital Economics, if seasonal differences were removed from the numbers, this would be the third-smallest June price hike in the past 14 years.

And not all markets have recovered entirely. The price index for Toronto shows prices there are still 2.8 per cent lower than a year ago, while in nearby Hamilton, prices are down 0.4 per cent on the year.

Vancouver, on the other hand, pulled up the national numbers with a 13.3-per-cent spike in its house price index over the past year.

"However, the market has taken a sharp turn for the worse in Vancouver," Capital Economics' senior Canada economist, Stephen Brown, wrote in a client note.

Home prices finally inch up in June

  Home prices finally inch up in June There are signs the needle has finally moved in a positive direction on the region’s sagging real estate market. There are signs the needle has finally moved in a positive direction on the region’s sagging real estate market.

Our latest tally of global housing markets shows that American house prices have recovered to a new nominal high, and that in Spain Policymakers may well be left scratching their heads, however: increasing housing affordability for citizens House - price index : rebased to 100 at a selected date.

There is a small but vibrant web forum, housepricecrash.co.uk, whose members’ outrage at inflated property prices is matched only by their dismay that the longed-for slump has never materialised. After Nationwide reported last week that house prices had fallen for the third month in a row

"Despite edging up in June, the sales-to-new listings ratio is close to its weakest in five years and suggests that house price inflation will plummet towards zero over the second half of 2018."

Pinsonneault noted that there is a large disparity in price growth in different types of housing. Condo prices in Toronto are up 7.8 per cent in a year, despite the overall price decline in that market. In Vancouver, condos are up 16.3 per cent.

Unlike the average sales prices reported by the Canadian Real Estate Association (CREA), the Teranet/National Bank house price index tracks repeat sales of homes over time, creating an "apples-to-apples" comparison of house prices.

Earlier on HuffPost Canada:

  • 'Fear' Now Driving Vancouver's Housing Market: Sotheby's
  • China's Real Estate Buyers Flock To Montreal As New Taxes Take Toll On Toronto, Vancouver

CREA's numbers for June pegged the average house price in Canada at $496,000, down 6.4 per cent in a year. But that decline was largely due to fewer high-end homes selling, which dragged down the average price.

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show ad. House prices slump and properties languish on the market for months as stamp duty rises and fears over Brexit hold back buyers. Home owners selling their properties are being forced to slash their prices after slow growth in the housing market amid Brexit uncertainty.

Canadians care about the value of their houses and there is some evidence that falling house prices can rein in TD Bank says the Canadian housing market will recover at the end of this year and strengthen in 2019 on the Luxury home markets slumping in Toronto, Vancouver, reports conclude.

CREA's own apples-to-apples index of house prices suggested that comparable prices are up one per cent in the past year.

This article originally appeared on AMP: HuffPost Canada at https://www.huffingtonpost.ca/2018/07/12/house-prices-canada-teranet_a_23480605

Follow @MSNMoneyCanada on Twitter.

Toronto stocks edge higher, loonie lower .
Toronto stocks edge higher, loonie lowerThe Toronto Stock Exchange's S&P/TSX composite index was up 3.35 points to 16,498.08, after 90 minutes of trading.

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