Canadian home prices saw the smallest 12-month gain in almost a decade last month, according to the Teranet–National Bank National Composite House Price Index.
The average price of a home rose 0.4 per cent in July, which represents the smallest increase since November 2009, during the depths of the global financial crisis.
Gains in Quebec City (1.0 per cent), Halifax (3.1 per cent), Toronto (3.2 per cent), Hamilton (5.1 per cent), Montreal (5.8 per cent) and Ottawa-Gatineau (6 per cent), were not enough to push the national average higher.
The biggest drags took place in Western Canada’s three largest markets. Vancouver fell 6.2 per cent, Calgary was down 3.1 per cent, and Edmonton dropped 2.8 per cent.
The other Western markets included in the report were up only slightly. Winnipeg rose 0.5 per cent and Victoria increased by 0.6 per cent.
Looking at it on a month-to-month basis, the national average was up 0.7 per cent.
However, the report’s authors warn that gains over the last three months do not mean the market has turned the corner.
"Indeed, the three latest rises were weak compared to the 21-year average for those months. If seasonally adjusted, the national HPI would have been down in these months this year,” said the report.
“That being said, the recent rebound in home sales across Canada was also felt in the Western part of the country. This should help limit home-price deflation in this region.”
If there was a seasonal adjustment, prices would actually have fallen 0.1 per cent in July.
Vancouver prices fell 1 per cent from June, representing the 12th consecutive month without a rise. It was the only metropolitan area included in the report that wasn’t up.
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains