Calgary home prices reached an all-time high in March according to the Teranet – National Bank House Price Index™ released today.
Calgary’s index increased 1.37% between February and March and was up 9.68% year-over-year. The annual increase was the largest posted since April 2008.
It’s important to note that only homes with at least two sales are included in this index. For full methodology, click here.
If you’re only tracking new home prices, you might be more interested in the New Housing Price Index from Statistics Canada (see previous post). However, the NHPI doesn’t include condominium-apartment sales; it covers single dwellings, semi-detached and row houses (town house and garden home). For full methodology of the NHPI, click here.
National Bank: Outside a recession, it is the first time in 15 years of existence of the Composite Index that prices did not increase in March. This being said, the weakness is not generalized, but rather regionalized. In March, Victoria left the club of 12-month price deflation for the first time in 13 months, while Montreal joined it for the first time since November 1996. Home price deflation now characterizes each of the four regions east of Toronto covered by the Index. This is consistent with the excess supply observed on the home resale markets in these regions. This situation is likely to persist over the next few quarters. But elsewhere, home resale market conditions generally range from tight to balanced, a situation that does not herald a significant decline in house prices. (Read full commentary)
TD Bank: Markets experiencing a decline in home prices are facing a rising inventory of homes for sale on the market, following what appears to have been a number of years of overbuilding. Meanwhile, home price pressures remain the strongest in cities facing tighter conditions – as a low number of homes for sale on the market has put the bargaining power in the hands of the seller. This is particularly true in Calgary and the single-family home market in Toronto. However, these cities also have a record number of new homes currently under construction, which should help alleviate some supply pressures in the coming months. (Read full commentary)