March 31. 2010
We’ve been waiting for it and now its finally arrived; Teranet’s House Price Index for the month of January, yay.
Teranet must either be slow or its just a terrifically complicated index as there is always a two month gap between the report and the month it is reporting on. Nevertheless, we at BuzzBuzzHome LOVE the House Price Index as we feel it provides a far better analysis of what’s REALLY happening in the market as opposed to the bi-monthly MLS reports which just aren’t that accurate.
So, what’s the Teranet and the National Bank of Canada saying about the Canadian housing market? Well, according to January 2010 figures, they’re saying that home price appreciation really isn’t that grand. In fact, the report states that January saw the smallest monthly increase since prices began rising.
“Canadian home prices in January were up 7.5% from a year earlier, according to the Teranet-National Bank National Composite House Price Index™. January was the fourth consecutive month in which prices were up from a year earlier, after 10 consecutive months of 12-month deflation. The turnaround is due to nine straight monthly increases in the countrywide index. However, January’s 0.5% monthly gain was the smallest so far.”
Considering that house prices across Canada have increased only 7.5% since January 2009, and significantly less than that since the high times of 2008, it seems that the hype surrounding supposed ‘hyper appreciation’ of Canada homes may, in fact, be a little exaggerated.
Check out the full report Teranet monthly report here…