Canadian Home Prices Up 1.1% in May

June 27, 2012

Monthly changes in the Teranet-National Bank National Composite House Price Index™ tend to be greater in May and June each year. The index for May 2012 bears out this tendency, showing Canadian home prices up 1.1% from the previous month and reaching a new historical high for a second month in a row. For the first time in 11 months, none of the 11 metropolitan markets surveyed showed a monthly price decline in May. Prices were up 2.0% in Calgary and 1.4% in Edmonton and Toronto. For the two Alberta markets it was the second consecutive strong monthly gain after seven months of decline. For Toronto it was the fifth consecutive monthly gain. Prices were up 1.1% in Vancouver, 1.0% in Hamilton and Winnipeg, 0.6% in Ottawa-Gatineau and Montreal and 0.4% in Quebec City and Halifax. For Halifax it was the seventh consecutive monthly gain, currently the longest run of monthly rises among the markets covered. Prices in Victoria were flat.

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.