The latest Teranet–National Bank National Composite House Price Index indicates Calgary and Edmonton prices for repeat home sales remain significantly off their peaks.
The index says Calgary prices are down 6.43 per cent from their peak in October 2014 while Edmonton prices have dropped 5.8 per cent from their peak in September 2007.
Nationally, the composite index for 11 centres found that prices reached their peak in July.
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.
Nationally, the index was up 0.7 per cent from the month before.
“As in the two previous months, the gain was not really a sign of countrywide market vigour, since the 21-year average for the month is 1.0 per cent. As in May and June, it was only because of seasonal pressure that the index rose at all. If this pressure were taken out by seasonal adjustment, the composite index would show retreats of 0.4 per cent in May, 0.5 per cent in June and 0.1 per cent in July,” it said.
“The unadjusted index was held down in July by a 1.0 per cent decline in the Vancouver index, its 12th month without a rise. Vancouver was the only metropolitan area surveyed whose run of declines continued in July. Indexes for the other 10 markets of the composite index were all up on the month: Quebec City 0.1 per cent, Edmonton 0.5 per cent, Victoria 0.6 per cent, Calgary 0.7 per cent, Toronto 1.3 per cent, Hamilton 1.3 per cent, Halifax 1.6 per cent, Montreal 1.7 per cent, Ottawa-Gatineau 2.0 per cent and Winnipeg 2.9 per cent.” it said.
The report said the recent weakness of indexes for several markets is reflected in the 12-month change in the composite index, which at +0.4 per cent in July was the smallest since November 2009. That rise was pulled down by the three largest markets of Western Canada – Vancouver, down 6.2 per cent from a year earlier, Calgary, down 3.1 per cent, and Edmonton, down 2.8 per cent.
“In the other two Western markets of the composite index, the 12-month gain was slight – Winnipeg 0.5 per cent, Victoria 0.6 per cent. Advances from a year earlier were larger for Quebec City (1.0 per cent), Halifax (3.1 per cent), Toronto (3.2 per cent), Hamilton (5.1 per cent), Montreal (5.8 per cent) and Ottawa-Gatineau (6.0 per cent).
“Besides the Toronto and Hamilton indexes included in the composite index, indexes exist for seven other urban areas of the Golden Horseshoe. Here the downtrend since last August noted in our previous reports is now a thing of the past. All of these indexes were up from the beginning of the year: Oshawa 2.6 per cent, Guelph 4.0 per cent, St. Catharines 4.1 per cent, Barrie 4.9 per cent, Kitchener 5.0 per cent, Brantford 7.7 per cent and Peterborough 8.7 per cent,” explained the report..
“Indexes not included in the composite index also exist for seven markets outside the Golden Horseshoe. The two in B.C. have been struggling recently – Abbotsford-Mission down 2.7 per cent since the beginning of the year, Kelowna showing a rise only because of a strong gain in June. The five in Ontario have done better year to date – Sudbury up 4.8 per cent, London 5.4 per cent, Windsor 7.7 per cent, Kingston 7.7 per cent and Thunder Bay 10.5 per cent.”
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