Oversupply in any market would normally lead to falling prices but that’s not happening in Canada’s housing market, according to National Bank Financial.
The bank and mortgage lender says that house prices were up 0.9 per cent nationally in May from a month earlier and 4.6 per cent year-over-year.
In 10 of the 11 urban markets studied, there were increased prices but in Calgary prices were down by 3.3 per cent month-over-month with high-end houses taking the largest hit.
That statistic come against the backdrop of Vancouver, Toronto, Hamilton and Quebec City all setting new record highs.
Meanwhile, the bank’s senior economist Marc Pinsonneault said there are signs of oversupply in all markets except Ontario and B.C.