Home Prices In December Up 3.1% From A Year Earlier

January 23, 2013

The Teranet-National Bank National Composite House Price Index™ rose 3.1% over the 12 months of 2012, the lowest rate in three years. December was the 13th consecutive month of deceleration in 12-month inflation. Within the Canada-wide trend there is considerable variation among the 11 metropolitan markets surveyed. Up through September, the cross-country trend was replicated in the Vancouver market, but in December there were only two markets with continuous runs of deceleration: Toronto (eight months) and Winnipeg (six months). The 12-month gain exceeded the cross-country average in six metropolitan areas: Hamilton (7.4%), Toronto (6.3%), Halifax (5.6%), Quebec City (4.2%), Calgary (4.1%) and Winnipeg (3.9%). It lagged the average in three markets: Montreal (3.0%), Ottawa-Gatineau (2.6%) and Edmonton (1.5%). Prices in Victoria were flat from a year earlier and prices in Vancouver were down 2.0%. Last October, on the basis of the U.S. Case-Shiller index (composite 20 cities), the 12-month change in the price of homes south of the border exceeded the pne in Canada for the first time in six and a half years.

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.