"Canadian home prices in July were up 1.3% from the previous month, according to the Teranet-NationalBank National Composite House Price Index. This rise took the index to a new high of 215 (January 2000 = 100, see chart above0). It was the fourth consecutive monthly increase exceeding 1%, and the eighth consecutive monthly increase after three straight monthly declines."
MP: On an annual basis, Canadian home prices increased by 5.26% compared to July last year, the highest annual gain in nine months, since October 2010. Over the last ten years, annual home price appreciation in Canada has averaged slightly more than 7%, which is lower than the 12.4% annual home price appreciation in the U.S. during the six-year period between January 2000 and December 2005 that led to the unsustainable real estate bubble and subsequent price correction.
Q: Is Canada headed for a real estate bubble, or are those record-high price levels sustainable?