Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
Reporting on key macro data at the time of release.
Real-time insight on key fixed income and fx markets.
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
- MNI ResearchMNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
- About Us
--New House Price Index +0.1% M/M, +3.5% Y/Y
--3Q Household Debt/Disposable Income Reaches Record 171.1%
By Yali N'Diaye
OTTAWA (MNI) - After hovering at 3.8% for three months, Canada new
house price growth slowed to 3.5% year-over-year in October, Statistics
Canada reported Thursday.
On a monthly basis, prices edged up 0.1% after rising 0.2% in
September. House only prices rose 0.2% and land only prices were flat on
the month, with 12-month growth rates declining to 3.3% from 3.6% and
4.1% from 4.6%, respectively.
Prices were flat in more than half of the metropolitan areas - 15
of 27 - on the month.
The more comprehensive Teranet-National Bank National Composite
House Price Index suggested the slowdown could continue in November,
supporting the Bank of Canada's expectations of a housing market cool
down. The Teranet index was down 0.5% from October, the third
consecutive monthly decline.
On a 12-month basis, the composite index rose 9.2%, the smallest
12-month gain since June 2016 and a fourth consecutive deceleration.
Statistics Canada also reported Thursday that household credit
market debt - consumer credit, mortgage, and non-mortgage loans - rose
1.4% in the third quarter to C$2.1 trillion, led by a 1.5% increase in
mortgage debt to C$1.4 trillion.
With household debt rising faster than disposable income, the
credit market debt-to-disposable income ratio reached a new record high
of 171.1%, up from 170.1% in the second quarter.
On the net worth side, the value of household residential real
estate declined by C$3.0 billion in the third quarter on lower housing
resale prices, marking the first decrease since the first quarter 2009.
Signs of housing price inflation slowdown were also evident for new
houses, as their 3.5% yearly gain in October was the smallest since last
Thursday's data reflected a contrast between Toronto and Vancouver.
While new house price gains picked up in Toronto to 0.1% after being
flat in September, they slowed down in Vancouver, where they rose 0.3%
after a 0.7% gain in September.
On a year-over-year basis, however, prices in Vancouver rose 8.4%,
the largest increase since July 2007, while prices in Toronto were up
5.1%, the smallest gain since April 2016.
At the provincial level, 12-month price gains in Ontario slowed to
4.9% in October from 5.9% in September, while they appreciated at a
steady pace of 7.3% in British Columbia. They picked up slightly in
Alberta to 0.4% from 0.3%.
--MNI Ottawa Bureau; email: firstname.lastname@example.org