Teranet and the National Bank of Canada have released their latest Composite Price Index covering the April 2024 to May 2024 period covering the country's 11 largest CMAs and the index rose "by 0.5% from April to May, after remaining stable the previous month. In May, seven of the 11 CMAs included in the index recorded growth: Halifax (+1.5%), Hamilton (+1.1%), Calgary (+1.0%), Vancouver (+1.0%), Victoria (+0.8%), Toronto (+0.5%) and Quebec City (+0.4%). Conversely, decreases were recorded in Edmonton (-0.7%), Winnipeg (-0.6%) and Ottawa-Gatineau (-0.2%), while prices remained stable in Montreal during the month. On the other hand, increases were observed in fifteen of the 20 CMAs not included in the composite index for which data are available in May. The strongest monthly gains were seen in Saint John (+8.8%) and Lethbridge (+2.1%). Conversely, the biggest declines were in Guelph (-3.0% after a 5.8% rise the previous month) and Sudbury (-2.9%)."
The interesting result here is for Thunder Bay. Monthly prices between April and May 2024 rose by 2.5 percent but what is more remarkable is the year over year increase for Thunder Bay which puts it at the highest amongst the 14 Ontario CMAs in the Teranet data. As the accompanying figure shows, Thunder Bay registered a May 2023 to May 2024 increase of 10.42 percent, followed by Brantford at 8.99 percent and then Windsor at 7.82 percent. Near the bottom are St. Catharines-Niagara, London and Guelph at 1.6 to 0.9 percent annual increases. The strong showing in Thunder Bay is a function of a number of factors including recent growth in population. However, population has been growing across Ontario so one wonders if part of the increase is also a function of the fact that Thunder Bay house prices are amongst the most affordable not only in Ontario but Canada as a whole attracting buyers from away.
All in all, good news for current owners of property in Thunder Bay. Perhaps a bit more problematic for those in Thunder Bay who wish to get into the market.
