The House Price Index continues to paint a slightly different picture than what MLS stats are showing for the Calgary market. In May 2009, MLS statistics showed that Calgary SFH prices increased by 2% from the previous month, and down 9% from May 2008.
However, the HPI, based on sales pairs, show that prices actually decreased 2.2% from April, and 12.2% from the previous May. Calgary prices have been correcting since August 2007 and are now down 15.2% from their peak of that month. The Calgary index has shown monthly declines in 18 of the 21 months posted since then, including 11 months in a row from last July through May.
Of the six constituent metropolitan-area indices, four showed monthly rises in May – Halifax (1.3%), Montreal (1.5%), Toronto (2.0%) and Ottawa (0.7%). For both Halifax and Montreal it was a third consecutive monthly increase. The Ottawa monthly rise came after six consecutive declines, the Toronto monthly rise after eight consecutive declines. Calgary and Vancouver continued to correct downward in May, each showing an 11th straight monthly decline.
Four of the six city indices were down from a year earlier – Vancouver (−11.8%), Calgary (−12.2%), Toronto (−6.5%) and Ottawa (−0.1%). Montreal stands apart as the only market that has yet to show a 12-month decline. Halifax has shown 12-month declines in only two months, February and March 2009.
Canadian home prices in May were down 6.9% from a year earlier, according to the Teranet-National Bank National Composite House Price Index™. It was the sixth consecutive 12-month decline. The index is now down 8.9% from its peak of last August. However, its run of eight straight monthly declines ended in May with a 0.7% rise from April.
Note: The HPI lags by almost two months which is why May’s numbers were just released today.