Cities in Ontario and B.C. have been Canada’s hottest real estate markets of late, but Calgary took top spot in August with a surprising 3.9% monthly gain in repeat home sale prices according to the Teranet-National Bank’s House Price Index.
Calgary’s 3.9% increase month-over-month was the highest in the country, and the fourth largest increase for the city in 15 years.
Going back to 2000, Calgary’s Teranet index increased over 3.9% on a monthly basis only 4 other times:
- May 2006: 4.8%
- Jun 20006: 4.3%
- Aug 2006: 5.2%
- Apr 2007: 4.8%
Since last month’s real estate activity was nowhere near the heady and booming days of 2006 & 2007, you may I understand why I find the 3.9% monthly increase suspect.
By comparison, the MLS® HPI for Calgary only had a 0.2% m/m increase in August. Granted, Teranet’s HPI only deals with repeat sales. Still… I’m very interested in knowing what the Brookfield RPS data shows for Calgary; their August HPI will be out soon.
However, I’m not one to dismiss data just because it doesn’t align with my views, but I wouldn’t be surprised if we see a percentage drop for September as the Index has been see-sawing the past few months (and especially since other metrics simply don’t support that large a monthly gain)
- -3.3% in May
- +2.5% in June
- -1.9% in July
- +3.9% in September
Year-over-year, Calgary prices were up 0.7% and off the October 2014 peak by just -0.9%.
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