Econintersect: Canadian house prices have declined for the sixth consecutive month. The decline from the high in August 2012 is 1.8%, occurring in two steps, and is the second fastest in the last 15 years, exceeded only by a decline of nearly 9% in 2008 in sympathy with the U.S. housing bubble collapse. The overall rise in Canadian house prices from 2001 to 2012 was 120%. The biggest increase among the three largest markets saw Vancouver houses go up more than 250%.
The same time interval before the 2006 U.S. house price peak would mean we would start in 1995. The CoreLogic data indicates a rise of 150% over that eleven year period, somewhat larger than the national price rise in Canada.
The following graph from Macro Business shows the relentless rise in Canadian house prices.
For comparison here is a U.S. house price graph from Calculated Risk.
Although the price increases in the two countries are comparable some have pointed out that the Canadian prices have never gone parabolic as they did in the U.S.
- Canadian house prices fall for 6th straight month (Leith van Onselen, Macro Business, 21 March 2013)
- CoreLogic House Price Index (Bill McBride, Calculated Risk, September 2012)