Canadian home prices up 1.3% in July

September 28, 2011

TORONTO, ON – Canadian home prices in July were up 1.3% from the previous month, according to the Teranet–National Bank National Composite House Price Index™. This rise took the index to a new high of 146.51 (June 2005 = 100). It was the fourth consecutive monthly increase exceeding 1%, and the eighth consecutive monthly increase after three straight monthly declines. In contrast to the three previous months, however, not all of the six metropolitan markets surveyed showed a gain. Prices rose 2.3% in Calgary, 1.7% in Toronto, 1.0% in Ottawa, 0.9% in Vancouver and 0.5% in Montreal, while declining 0.9% in Halifax. As the numbers show, the dispersion of the monthly increases was very high. Vancouver’s July rise extended its string of consecutive monthly gains to 10, currently the longest run of monthly rises among the markets covered. For five of the six metropolitan areas, the indexes were at all-time highs. The Calgary index is still down 8.8% from its all-time high of August 2007 and down 0.9% from its pre-correction peak of August 2010.

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.