Calgary home prices were up 0.4% in July from the previous month, and up 7.7% from a year earlier according to the Teranet-National Bank National Composite House Price Index™ released today.
Canadian home prices in July were up 0.5% month-over-month, and up 12.4% from July 2009. It was the smallest 12-month gain in 4 months. It was the 15th monthly rise, making this run of increases the longest since October 2006.
For the first time in 4 months, prices did not rise from the month before in all 6 markets. Vancouver was the exception – down 0.3% from June.
For those comparing July’s MLS® figures and Teranet’s House Price Index, Scotiabank’s report earlier in September sheds some light:
Teranet is reported on a three month moving average basis, versus the spot reports produced by CREA. Further, Teranet is based on land registry figures and there may be between a one- and two-month lag in reporting sales transactions to public land registry offices. Indeed, when we correlate monthly percentage changes in the Teranet and CREA measures, the best correlation arises from comparing current Teranet readings to CREA from four months prior.
That said, the correlation is modest, and thus leaves open the possibility that CREA has begun to show price declines since May because it is impacted by compositional shifts that do not affect Teranet since the latter is based on repeat sales data.