Home Prices In June up 5.4% From A Year Earlier

July 25, 2012

Monthly changes in the Teranet-National Bank National Composite House Price Index™ tend to be greater in May and June of each year. The readings for May and June 2012 bear out this tendency, showing monthly gains of 1.1% and 1.2% respectively. The June increase takes the index to a new high for the third month in a row. June was also the second consecutive month in which none of the 11 metropolitan markets surveyed showed a price decline from the month before. The monthly rise was 1.7% in Calgary and Ottawa-Gatineau, 1.6% in Toronto, 1.5% in Winnipeg, 1.4% in Quebec City, 1.3% in Edmonton, 1.1% in Montreal, 0.9% in Halifax, 0.7% in Victoria and Hamilton and 0.5% in Vancouver. For the two Alberta markets it was the third consecutive strong monthly gain after seven months of decline. For Halifax it was the eighth straight monthly gain, the longest such run among the 11 markets. For Toronto and Montreal it was the sixth consecutive monthly gain. The index is now at an all-time high in eight of the 11 markets surveyed, the exceptions being Victoria, Calgary and Edmonton.

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.