Home prices in Calgary dipped between August and September but were above year ago levels according to the Teranet–National Bank House Price Index™ released today.
Calgary prices fell -0.38% month-over-month but posted a 5.55% year-over-year increase which was the second best annual gain in Canada.
Month-over-month declines are common in the fall/winter months as you can see below. In fact, you can expect them over the coming months.
Overall, Canadian prices were flat in September and up 2.7% y/y. Teranet states that since the average September gain in 15 years of index data collection has been 0.2%, this year’s flatness therefore suggests a market cooler than usual.
Other notable statistics:
- Prices were down from a year earlier for a seventh consecutive month in Victoria (−0.5%)
- For Vancouver it was the first time in 14 months that prices were up from a year earlier.
Marc Pinsonneault, economist with National Bank states: “Price behaviour seems to be at odds with the recent pickup in resale activity, which we estimate at close to 42,000 units in September. It looks that households are willing to buy, but they are now bargaining harder on prices to compensate for higher mortgage rates.” (click to read research note)
The Teranet – National Bank House Price Index™ is estimated by tracking the observed or registered home prices over time. Properties with at least two sales are required in the calculations. 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.