September marked the ninth straight month of home price increases in Canada, according to the Teranet – National Bank National Composite House Price Index released today.
The national index rose 0.6 per cent over last month outpacing the 17-year September average of 0.2 per cent. September was also the seventh straight month that the index recorded a record high.
Teranet’s index looks at properties that have been sold more than once in order to figure out price changes over time. Using what’s known as the repeat sales methodology, the index tracks observed or registered home prices, ignoring certain properties including ones that have been rezoned or have a disproportionately high turnover rate.
The real estate data firm’s index follows prices in 11 metropolitan areas.
Despite the national index reaching an all-time once again, month-over-month prices were down in five of the metro areas surveyed in September, with Quebec City seeing prices drop by 1.9 per cent, the most of all.
On the other end of the spectrum, Halifax was on top with a 1.9 per cent index increase, followed by Vancouver at 1.6 per cent and Hamilton at 0.8.
Vancouver’s gains pushed the city’s index to 201.2, making it the only province to break the 200 mark, which signifies a doubling in a market’s home prices since June 2005. An index of 100 would signal parity with prices in June 2005, which is when Teranet started collecting this data.
Victoria, a second BC market, also saw prices climb. There, they increased by 0.8 per cent, according to the index.
Toronto saw the smallest month-over-month price growth. The city’s index rose 0.6 percent, just behind Calgary’s 0.7 index increase.
Year-over-year, the composite index climbed 5.6 per cent. This was the greatest national increase since May 2012. To date, the index is up 5.9 per cent from 2014.
Hamilton led all metro areas with a 12-month index gain of 10.6 per cent. Unsurprisingly, Vancouver and Toronto rounded out the top three at 10.4 per cent and 8.6 per cent respectively.
Quebec experienced the largest decline, with September home prices down 2.9 per cent year-over-year from the same time in 2014. To the west, Winnipeg home prices dropped 2.3 per cent.