Housing Starts, Home Sales, Two Price Indexes By Investing.com
By Ketki Saxena
Investing.com – This week, Canadian Econ covered a slew of housing data, including housing starts, existing home sales, the CPI, which includes housing, and two home price indexes across the country: the MLS HPI and the Teranet/Banque Nationale HPI .
March saw a slowdown compared to February and March 2021 in both sales and inventory.
While still at an all-time high, home sales recorded on Canadian MLS systems fell 5.4% between February and March, and 16.3% from the all-time high of March 2021. Supply remains tight, with newly listed homes down 5.5% month over month. Future supply also appears constrained, with housing starts down 2% m/m.
The house price indexes present a somewhat more mixed picture. The MLS Aggregate Composite Home Price Index points to a 1% increase in home prices in Canada month-over-month. Over one year, the index is up 11.2% (not seasonally adjusted) and 27.1% in seasonally adjusted data,
The Teranet/National Bank index, which tracks repeat sales of single-family homes, rose 2.1% month-over-month and 18.4% year-over-year.
The Consumer Price Index, the official measure of inflation in Canada, calculates that housing costs rose by 6.7%.
Housing in Canada week recap
Housing starts in Canada, CMHC: Housing starts in Canada fell 2% from the previous month to 246,243 units in March 2022, below market expectations of 250,000 units. Urban starts fell 2%, urban multi-unit starts fell 5%. Individual urban housing starts, however, increased by 8%.
Existing Home Sales, CMHC: Sales of existing homes recorded on Canadian MLS® systems fell 5.4% between February and March, down 16.3% (unadjusted for seasonality) from the record set in March 2021. The number of newly listed homes fell 5.5% month-over-month.
The MLS, CMHC Aggregate Composite House Price Index: the MLS HPI rose 1% MoM in March 2022, slowing from a 3.5% increase in February. The real (unadjusted) national average house price was $796,000 in March 2022, up 11.2% from the same month last year. The index rose 27.1% year-over-year in March on a seasonally adjusted basis, mitigating the effect of seasonal or purely thematic influences.
Teranet/National Bank House Price Index: The index, which tracks repeat sales of single-family homes in major Canadian markets, rose 2.1% in March from February, compared with a 1.5% gain in February On an annual basis, prices homes rose 18.4%, matching a record set in August 2021 and up from 17.7% last month on an annual basis.
CPI, Statistics Canada: The cost of housing on the CPI increased by 6.7%. Statistics Canada’s approach does not fully take into account the appreciation of owner-occupied dwellings. Household running costs also rose 4.5%, while furniture prices rose 13.7% year-over-year.