Earlier today, Teranet and National Bank released the latest edition of their house price index for Canada. It showed that prices boomed 1.8% from June to July in the fifth consecutive monthly increase.
The rise is the second-largest in a single month, surpassed only by July 2006.
Seasonally adjusted, prices were up 2.4% m/m with Halifax, Hamilton and Vancouver leading the way.
Signs of rising home prices were a big reason the Bank of Canada cited when boosting rates in June and could lead to another hike. The implied probability for Sept 6 is a 30% chance of a hike but that doubled for the Oct 25 meeting.
In year-over-year terms, prices are down 1.9%. Much higher rates for borrowers aren’t hitting as hard as many believed and the discussion has shifted to Canada’s booming immigration numbers as a source of ceaseless housing demand.