The 12-month gain in the composite index slowed to 3.9% in January, the seventh consecutive month of deceleration. The largest 12-month rise was 8.2% in Halifax. It remains to be seen whether this lead will last, since the small number of transactions normally recorded in Halifax in December and January could make its reading less stable. The 12-month increase was 6.4% in Montreal, 5.3% in Ottawa, 5.1% in Vancouver and 3.9% in Toronto. Only in Calgary were prices down from a year earlier, by 3.4%.
Data for February from the Canadian Real Estate Association show generally balanced conditions in major urban markets. Relative to the average, conditions in Calgary were better for buyers and conditions in Vancouver better for sellers, a finding consistent with the movement of the Teranet-National Bank indices for these markets. The Toronto market is no longer tightening. Between January 17, when the federal minister of finance announced that the maximum amortization period for an insured mortgage would be reduced to 30 years from 35 years, and March 18, the announced effective date, the resale market may have been influenced by the prospect of this change.
Teranet – National Bank House Price Index™
The historical data of the Teranet – National Bank House Price Index™ is available at www.housepriceindex.ca.
The Teranet–National Bank House Price Index™ is estimated by tracking
observed or registered home prices over time using data collected from public land
registries. All dwellings that have been sold at least twice are considered in the
calculation of the index. This is known as the repeat sales method; a complete description
of the method is given at www.housepriceindex.ca
Teranet - National Bank House Price Index™ thanks the author for their special
collaboration on this report.
1 Value of Dwelling for the Owner-occupied Non-farm, Non-reserve Private Dwellings of Canada.
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