Calgary Repeat Home Sales Prices -3.8% Off Peak

The price of Calgary homes that have sold at least twice fell both on a monthly and annual basis in December according to the Teranet-National Bank House Price Index.

Prices fell -1.68% from November to December and were down -2.63% year-over-year.   Once again, it was the largest drop in the cities tracked by the index.

December marked the third consecutive month of declines for Calgary. Prices are now -3.8% lower than the peak from October 2014.

Vancouver, Toronto, Hamilton & Victoria led in price appreciation, with gains of 12.9%, 9.5%, 8.8% and 8.7% year-over-year.

National Bank economist Marc Pinsonneault wrote that “the collapse in oil prices has translated into house price deflation in Calgary,” and that he expects “a significant deceleration in the national house price index growth rate in 2016.”

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. 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.

Teranet-National Bank House Price Index for Calgary

Teranet-National Bank House Price Index for Calgary

Teranet - December

Source: housepriceindex.ca

One response to “Calgary Repeat Home Sales Prices -3.8% Off Peak

  1. How does this price index take into account value added by house flippers performing renovations on houses?


    From the methodology page: “Any property that has been sold at least twice is considered in the calculation of the index, except those that may be related to influences from within the property (endogenous factors): a) non-arms-length sale, b) change of type of property, for example after renovations, c) data error, and d) high turnover frequency. Once the unqualified sales pairs have been eliminated, the estimation of the index in a certain jurisdiction can be initiated by casting all qualified sales pairs in a linear regression algorithm.”
    -Mike Fotiou

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