Real Estate Rebound in Canada: Home Price Index Rises for 8th Straight Month to a New Record High
1. "Canadian home prices in December were up 5.2% from a year earlier, double the 12-month advance recorded in November, according to the Teranet-National Bank National Composite House Price Index. December was the third consecutive month in which prices were up from a year earlier, after 10 consecutive months of 12-month deflation. The turnaround is due to eight straight monthly increases in the countrywide index. December's robust 1.2% monthly gain pushed the composite index above the pre-recession peak, that is, to a new record (see chart above)."
2. REUTERS -- "Encouraged by rock-bottom interest rates and rising consumer confidence, home sales and prices have been on a stunning rebound after grinding almost to a halt in the wake of the global financial crisis in late 2008.
"All in all, this report adds to the growing list of indicators pointing to a strong housing market in Canada, and underscores the view that Canadian home buyers are continuing to take advantage of the still favorable buying conditions, particularly given the very low mortgage rates (variable-rate mortgages goes are just 2.25% and five-year fixed-rate mortgages are below 4%)," said Millan Mulraine, an economics strategist at TD Securities."
3. Does Canada now have to be worried about a U.S.-style housing bubble? Opinions are mixed, but some experts are saying Yes, see article here.