MNI BRIEF: Canada Feb Teranet Home Price Index Record -11% YOY
Canadian home prices fell a record 11.2% in February from a year ago, according to the Teranet-National Bank index, the second indicator this week to reveal the slump following the central bank's eight rate hikes.
Prices also fell 0.5% in February from January, the tenth consecutive month-over-month decline, in records which go back to at least 2000. The data come days after Canada's main realtor group said prices fell a record 18.9% in February from a year earlier, the most in records back to 1980, while sales fell 40%.
Housing boomed for two decades but is slipping after the BOC's tightening and remains vulnerable amid record consumer debts. Governor Tiff Macklem has said he's likely done hiking as rate hikes cool overheated demand including housing. Affordability remains pinched even after the price slump and officials have told government its goal of doubling the pace of home construction is at risk. (See: MNI: Trudeau Told Falling Prices To Hurt Homebuilding-Briefing)