Canadian Home Prices Down 0.2% in December

February 29, 2012

For a second consecutive month, Canadian home prices in December were down 0.2% from the previous month, according to the Teranet–National Bank National Composite House Price Index™. The two monthly retreats follow two months in which prices had been flat from the month before. December prices were down in five of the 11 metropolitan markets surveyed: 0.8% in Victoria, 0.5% in Ottawa-Gatineau and Montreal and 0.3% in Toronto and Vancouver. For Ottawa-Gatineau, Vancouver and Victoria it was the third consecutive decline and for Toronto it was the second. Prices in Edmonton were flat. Prices were up 0.3% in Quebec City, 0.6% in Winnipeg, 0.7% in Hamilton and Calgary and 0.9% in Halifax. In Calgary the December rise ended a run of three monthly declines.

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.