House Price Index (HPI): August 2010

Calgary house prices were down 0.5% between July & August according to Teranet-National House Price index released today.  Year-over-year in August, house prices in Calgary were up 5.0%.

For the Canadian composite index as a whole the monthly increase in August was 0.2%, the smallest since the index began climbing 16 months ago.   The uninterrupted string of 16 monthly gains exceeds the 14-month run of August 2005 through September 2006. Year-over-year, the index was up 10.4%.

“Looking ahead, prices are likely to fluctuate without tendency over the next few years. At the national level, current market conditions, close to the boundary between balanced market and buyers’ market … herald a deceleration in home price inflation,” said National Bank senior economist Marc Pinsonneault.

House prices are being buoyed by low mortgage rates, but at some point people will realize rates are heading up sooner or later, he said. “When that happens, preference for renting instead of buying should increase … This should reduce the pressure on house prices.”

(click to enlarge)

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

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.

6 responses to “House Price Index (HPI): August 2010

  1. I’ll have the latest weekly sales stats up tomorrow, but SFH sales are already higher not even counting what happens today.

    The median has now inched higher than September’s month-end. Here’s where it sits with 4 days left in the month (bolded, $390,250):



  2. Starting tomorrow, the “Sales of the Day” links will be password protected. Please send an email to with “Sales” as the subject heading if you wish to continue having access.

    You won’t be contacted other than to receive your login info, so don’t worry about being spammed.

    Anonymous email accounts will not be given access (First & last names needed)


  3. Mike but not the Mike F Mike.

    Request sent for access.

    Sales and Prices – I think we can all agree we are in a decline for both. I was talking to a young neighbour this summer (he is 20) and a friend too (who is 26ish) and we realised those under 30 may not even remember a time when homes have gone down in price! They were teens still in the last RE crash so to them, the last 10 years of RE boom has been “Normal Times”…

    What do you think?

  4. Weekly Sales Update

    SFH sales for Week 43 (October 22-28) was at its highest level since June 4-10

    Click to view Weekly Sales chart.

    I’ll have the month-end statistics posted Monday morning, so check back then!

  5. A third condo pre-sales announcement in as many weeks:

    Keynote Urban Village, which is celebrating its official opening today, currently consists of a 14-storey office tower, a 26-storey residential tower and 40,000 square feet of retail space occupied by Sunterra Market, Starbucks and RBC Royal Bank.

    The mixed-use development in the city’s Victoria Park neighbourhood is planning to launch pre-sales of condo units for another residential tower on the site.

    Read more:

  6. True to my form I thought I would pile on some more feel good news:

    Alberta weekly wages are up 7.5% as of August year-on-year and over $1000 for the first time. At the peak of the market in 2007 we were at $830. If you go by the theory that housing affordability is tied to income, this is very bullish.

    Any explanation for the odd 180 in the market over the last 2 weeks Mike F? I hope we don’t have an RE manipulator somewhere…

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