In his latest Consumer Watch Canada report, Benjamin Tal, Deputy Chief Economist at CIBC, he notes that while the average house price in Canada rose 8.6 per cent on a year-over-year basis in May, that number slows to 5.6 per cent if you take Vancouver out of the picture.

While the average house price climbed 25.7 per cent on a year-over-year basis to more than $800,000 in May, he found that by removing properties that sold for more than a $1 million there was a much more moderate price appreciation in the market. 
Read the full report here.

"Looking beyond the average price numbers reveals a highly segmented and multi-dimensional market that is probably influenced by different forces," Tal says, adding, "But even a multi-dimensional market can overshoot and the likelihood is that prices in the Canadian market and its sub-segments are higher than what can be explained by factors such as income growth, rent and household formation.