Calgary home prices were up 0.4% in August from the previous month and up 0.8% from August 2011 according to Teranet-National Bank’s House Price Index report released today. Seasonally adjusted ratios of new listings to sales, as reported by CREA, place Calgary along with Winnipeg and Hamilton in seller’s-market territory.
Canada-wide, monthly changes in the National Composite HPI tend to be greater in August than in the following six months. This year’s August increase of just 0.2% was the smallest August increase in 12 years. In three of the 11 metropolitan markets surveyed, prices were down from the month before: Vancouver (−1.2%), Victoria (−0.7%) and Quebec City (−0.6%). For Victoria it was the eighth consecutive month of 12-month deflation.
Year-over-year, prices were up 4.1% in Canada.
About the HPI
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 six metropolitan areas: Ottawa, Toronto, Calgary, Vancouver, Montreal and Halifax. The national composite index is the weighted average of the six metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census1, 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.
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.