OTTAWA, June 14 Canadian home prices rose in May
as Toronto remained robust despite recent government efforts to
cool the market, while prices in Vancouver picked back up to hit
a fresh peak, data showed on Wednesday.
The Teranet-National Bank Composite House Price Index, which
measures changes for repeat sales of single-family homes, showed
prices rose 2.2 percent last month.
Prices were higher in all 11 cities included in the index,
led by a 3.6 percent increase in Toronto and a 3.1 percent rise
in nearby Hamilton.
While other recent data suggested activity in the Toronto
market cooled in May, Wednesday's report pointed to accelerating
price growth in the resale market.
Compared with a year ago, prices were up 28.7 percent in
Toronto and 23.5 percent in Hamilton, a record for both. For
Toronto, Canada's largest city, it was the fourteenth
consecutive month of acceleration in home prices on an annual
basis, the report said.
Amid worries of overheating, the Ontario government
announced measures at the end of April to try to rein in price
gains in Toronto and the surrounding areas, including a foreign
Prices rose 1.5 percent on the month in Vancouver, bringing
the city's price index to a new peak. Still, the annual pace of
gains slowed to 8.2 percent.
The British Columbia provincial government imposed its own
foreign buyers tax in Vancouver last summer, which helped cool
the West Coast market, but there are signs the market is
The Bank of Canada warned last week that rising consumer
debt levels and an unbalanced housing market have raised
(Reporting by Leah Schnurr; Editing by Matthew Lewis)