|The 12-month gain of the composite index in May was 4.4%, the same as in April. The largest 12-month rise was 6.3% in Montreal, followed by 6.2% in Vancouver, 5.6 in Ottawa, 4.8% in Halifax and 4.6% in Toronto. Though Toronto showed the smallest 12-month inflation, it is the only market in which 12-month inflation has accelerated for three consecutive months. Twelve-month inflation decelerated for a fifth consecutive month in Halifax. Calgary prices were down 4.1% from a year earlier, for an eighth consecutive month of 12-month deflation.|
Given the time lags between home sales and their entry in public land registries, it is possible that the large April and May rises of the composite index were due to front-loading of sales to beat the March effective date of an announced shortening of the maximum amortization period for insured mortgages. This front-loading was very perceptible in Vancouver, incidentally the market with the fastest price index growth from March to May. In June, according to seasonally adjusted data from the Canadian Real Estate Association, market conditions were balanced in the country as a whole while appearing tight in Toronto.
Teranet – National Bank House Price Index™
The historical data of the Teranet – National Bank House Price Index™ is available at www.housepriceindex.ca.
The Teranet–National Bank House Price Index™ is an independently developed representation of average home price changes in six metropolitan areas: Ottawa, Toronto, Calgary, Vancouver, Montreal and Halifax. The national composite index is the weighted average of the six metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census1, 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.
All indices have a base value of 100 in June 2005. For example, an index value of 130 means that home prices have increased 30% since June 2005.
1 Value of Dwelling for the Owner-occupied Non-farm, Non-reserve Private Dwellings of Canada.