Canadian Home Prices Hit Three-Year Low in August
The national composite index dropped to its weakest level since April 2023, marking the eighth monthly decline in nine months.
Canadian home prices fell to their lowest point since April 2023 in August. The Teranet-National Bank Composite House Price Index declined 0.2% from July. This marks the eighth monthly drop in the last nine months.
Prices are now 4.2% below the peak recorded in November 2025. The seasonally adjusted index fell 0.6%, its first such decrease in six months. Daren King of National Bank confirmed the data in the report.
Regional Markets Show Sharp Divergence
Six of the eleven major cities in the composite index posted declines. Vancouver led the drop with a 1.6% fall. Halifax, Winnipeg, and Hamilton also recorded negative growth.
Five cities moved in the opposite direction. Victoria gained 0.5%, while Toronto and Quebec City each rose 0.4%. Montreal added 0.3% and Calgary edged up 0.2%.
Quebec City remains the national outlier. It posted a 9.0% year-over-year price gain. This extends its streak as the country's strongest performing major market.
Annual Data Reveals Deeper Deterioration
The composite index fell 3.6% year over year. This is steeper than the 3.2% decline seen in July. Vancouver led annual losses at 6.5%.
Hamilton followed with a 6.2% drop. Toronto recorded a 6.1% annual decline. These three cities anchor the national market's recent weakness.
Rising Yields Pressure Mortgage Affordability
US bond yields have risen sharply. This has pushed Canadian bond yields higher. The effect on mortgage rates remains limited so far.
The National Bank report expects higher financing costs in coming weeks. This will limit borrowing capacity for new buyers. Housing affordability is expected to deteriorate over the next quarters.
