Canadian housing prices rose in May by 0.7 per cent — the first time since October that they didn't decline month-over-month, according to a national index released Wednesday.
However, May's increase was not enough to stop the downward trend in year-over-year prices. The Teranet-National Bank home price index fell 6.9 per cent compared to May, 2008, the sixth straight 12-month decline, and a jump from the 6.7 per cent year-over-year drop posted in April.
The index is now down 8.9 per cent from its peak in August, 2008, said Marc Pinsonneault, senior economist with the National Bank Financial Group.
"This series is not seasonally adjusted (due to the short data span), but a quick back-of-the-envelope calculation suggests that prices may have risen by a more modest 0.2 per cent month-over-month if historical patterns were to be considered," cautioned senior TD Securities economist Millan Mulraine in a note, though he saw some reason for optimism.
"On the whole, this report does offer some hope that the correction in Canadian home prices may be nearing an end, further corroborating the other housing sector indicators that are conveying a similar message," Mulraine said.
Prices fell for the 11th straight month in Calgary and Vancouver. The other four cities included in the index all registered monthly increases — 1.3 per cent in Halifax, 1.5 per cent in Montreal, 0.7 per cent in Ottawa and two per cent Toronto — though prices in Ottawa and Toronto were down on a year-to-year basis. It was the third monthly rise in a row for Halifax and Montreal.
Vancouver prices were down 11.8 per cent from May, 2008 — a decline of 12 per cent from that city's June, 2008 peak — while Calgary's fell 12.2 per cent and are now down 15.2 per cent from their peak in August 2007.
May house prices (% change month-over-month/year-over-year):
National +0.7 / -6.9
Calgary -2.2 / -12.2
Halifax +1.3 / + 1.0
Montreal +1.5 / +2.3
Ottawa +0.7 / -0.6
Toronto +2.0 / -6.5
Vancouver -0.1 / -11.8
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