According Marc Pinsonneault, analysts at the National Bank of Canada, the indicator on Canadian house price posted modest gain in  April and is likely to continue that way. They don’t think market conditions will deteriorate significantly.

Key Quotes:

“The Teranet–National Bank Composite National House Price IndexTM rose 0.2% in April. Eight of the 11 constituent metropolitan areas recorded increases in the month.”

“After a difficult H2 2017, the Composite Index has stabilized in recent months. Moderate rises will likely continue to characterize the Composite index over the coming months, as conditions in the two major constituent home resale markets, Toronto and Vancouver, are now balanced (current active-listings–to-sales ratios close to their long-term average).”

“Let’s recall that over the last two preceding years, conditions in both markets were very tight, triggering double-digit percentage increases in the Composite index on a y/y basis.”

“We do not think that market conditions will deteriorate significantly from now on in both markets, as sales seem to have stabilized lately”.