Canadian Home Prices up 0.9% in August

October 26, 2011

TORONTO, ON – Canadian home prices in August were up 0.9% from the previous month, according to the Teranet–National Bank National Composite House Price Index™. It was the ninth consecutive monthly increase and the fifth of 0.9% or more. The August rise took the index to a new high of 149.46 (June 2005 = 100). Six of the 11 metropolitan markets surveyed were also at all-time highs. The monthly increase equalled or exceeded the national average in four markets: Toronto (1.6%), Winnipeg (1.3%), Hamilton (1.0%) and Ottawa-Gatineau (0.9%). The rise was 0.7% in Calgary, 0.6% in Vancouver and Edmonton and 0.3% in Montreal. Prices were flat from the month before in Victoria and Quebec City and down 0.2% in Halifax. Vancouver’s August increase extended its string of consecutive gains to 11, currently the longest run of monthly rises among the markets covered. The Halifax decline was the second in a row. Without Toronto, whose August gain was the fourth in a row to exceed 1.5%, the monthly rise of the composite index would be 0.6%.

The report can be accessed 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.

The Teranet–National Bank House Price Index™ is an independently developed representation of average home price changes in eleven metropolitan areas: Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Toronto, Ottawa-Gatineau, Montréal, Québec City and Halifax. The national composite index is the weighted average of the eleven metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census, the aggregate value of occupied dwellings in the metropolitan areas covered by the indices was $1.168 trillion, or 53% of the Canadian aggregate value of $2.207 trillion.