Montreal – National Bank and Teranet are pleased to announce that the Teranet – National Bank House Price Index™ will now provide a more timely indication of the housing market. The index will be published a full month sooner, no later than 30 days after the transaction month. Accordingly, the May 30th index publication will include index data from the months of March and April 2012 and will entail a slight revision to some of the city indices, more specifically the Vancouver and Victoria house price indice.
“This is another improvement in the Canadian benchmark house price index. It will help market participants make more informed financial decisions. Further index development can be expected, providing yet more value added information on the Canadian housing market.” said Simon Côté, Managing Director – Risk Management Solutions at National Bank.
The Teranet – National Bank House Price Index is an independent representation of the rate of change of Canadian single-family home prices. The measurements are based on the property records of public land registries, where sale price is available. The monthly indices cover 11 Canadian metropolitan areas: Calgary, Edmonton, Halifax, Hamilton, Montreal, Ottawa-Gatineau, Québec, Toronto, Vancouver, Victoria, and Winnipeg. Indices are published monthly, on the last Wednesday of each month, on www.housepriceindex.ca. Since its launch in December 2008, the index has steadily gained acceptance on a path to becoming a Canadian benchmark. It is now perceived by many as the most accurate measure of change in Canadian house prices.
“With the recent expansion into 11 cities and our focus on continuous improvement, the Teranet – National Bank House Price Index continues to strengthen its market acceptance as a reliable and trustworthy source of Canadian housing market performance for financial professionals” added Eduardo Alzamora, Director, Financial Services at Teranet. “This will further strengthen HPI’s position to become the most accepted measure when evaluating the rate of change in Canadian house prices.”
The Teranet – National Bank House Price Index is based on the “repeat sales methodology,” which is widely accepted as the most reliable and robust approach for tracking the housing market. In fact, this same methodology is used for the house price benchmark index in the United States. To be included in the calculation, properties must have been sold at least twice. The two prices are used to measure the increase or decrease in property value in the period between the two transactions.
The index is published monthly on the last Wednesday of each month at www.housepriceindex.ca. Indices are published 30 days after transactions are registered. The actual and historical values of the index, as well as a description of the methodology, are also available on this site.
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.