Canadian Home Prices Flat in October for a second straight month

December 21, 2011

TORONTO, ON – For a second consecutive month, Canadian home prices in October were flat from the previous month, according to the Teranet–National Bank National Composite House Price Index™. Prices retreated in seven of the 11 metropolitan markets surveyed. In September, prices had fallen in five markets and been flat in two. October prices were up from the previous month in Toronto (0.8%), Winnipeg (0.4%), Quebec City (0.3%) and Hamilton (0.1%). Prices were down 1.5% in Victoria and Calgary, 0.9% in Halifax, 0.4% in Ottawa-Gatineau, 0.3% in Vancouver, 0.2% in Edmonton and 0.1% in Montreal. It was the fourth decline in a row for Halifax and the second in a row for Calgary, Edmonton and Montreal.

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.