BuzzBuzzHome

Jan 29 2010

If you follow Canada house appreciation and deflation you’re aware the conflicting data from different sources. There is the Canada Real Estate Agency and Multiple Listing Service (MLS) that has been reporting breath taking price appreciation in the double digits. And, there is the Canada House Price Index by Teranet / The National Bank of Canada.

Our opinion at BuzzBuzzHome is that the more accurate of the two is the House Price Index – by a long shot. That being said, according to the Canada House Price Index by Teranet, Canada’s November 2009 house prices were up 2.6% over the year prior.

The report states the following:

“Canadian home prices in November were up 2.6% from a year earlier, according to the Teranet–National Bank National Composite House Price Index™. It was the second consecutive month of prices higher than 12 months earlier, after 10 consecutive months of 12-month deflation. The reason for the turnaround is that November was the seventh straight month in which the index for Canada as a whole was up from the month before, leaving it down only 0.1% from the peak of August 2008. Though the monthly gain of 0.8% was solid, it was the first time in six months that it was less than 1.2%. And in only one market, Vancouver, did the price rise exceed the 0.8% national average. Without Vancouver the composite index would have been up only 0.5%.

The Vancouver monthly increase was 1.9% in November. It was the sixth month of recovery for prices in this market and each monthly gain has been at least 1.5%, for a total annualized rise of 23.3%. No other metropolitan area showed a November gain exceeding 0.6%. This is a first in the current recovery, since Toronto’s monthly increases had always been at least 1.5%. The monthly rises were 0.6% in Toronto and Calgary, 0.4% in Halifax and Ottawa and 0.1% in Montreal. Prices in Montreal have been almost flat for four months.

The only market still showing 12-month deflation in November was Calgary, down 2.1% from a year earlier. Vancouver prices were up 1.0% from a year earlier, their first 12-month inflation, though they were still 2.3% off the peak of June 2008. Calgary prices were 10.7% off their peak of August 2007. Prices in the other four markets have been above their pre-recession peaks for at least five months except for Toronto, which passed the peak two months ago. Twelve-month inflation was 4.8% in Ottawa, 4.6% in Toronto, 3.6% in Montreal and 2.2% in Halifax.”

Read the full monthly ‘communique’ at housepriceindex.ca

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