OPINION: In Vancouver, prices declined in November for a second month in a row, for a cumulative drop of 1.9%, concentrated in dwellings other than condos. This is consistent with the fact that the decline in house sales since their peak last February started in detached dwellings, and is so far deeper in that category (top chart). Due to measures imposed by government (qualification for an insured mortgage, 15% tax on foreigners’ acquisitions, etc.), house prices still have downside in Vancouver. In contrast, sales continued to rise in Toronto, reaching record levels whether in the apartment category or for other types of dwellings (middle chart). We have yet to see a slowdown in response to the new ruling regarding the qualification for an insured mortgage. Toronto, Hamilton and Victoria are the three metropolitan regions pulling the Composite index up month after month. Apart from Vancouver and these three regions, house prices have risen minimally over the last twelve months or have declined.

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