Canada’s home price index snaps slide

Reuters · Wednesday, Feb. 23, 2011

TORONTO — Canadian home resale prices broke a three-month string of declines in December as five of six metropolitan markets rose, the Teranet-National Bank Composite House Price Index showed on Wednesday.

The index, which measures price changes for repeat sales of single-family homes in six metropolitan areas, showed overall prices were up 0.3% in December from November.

Overall prices were up 4.1% from a year earlier.

Heavily-weighted markets Vancouver and Toronto reported price advances of 0.5%, and 0.2%, respectively. Teranet said January data from the Canadian Real Estate Association showed “generally balanced” conditions in major urban markets. “Toronto and Vancouver could even be considered rather tight markets,” Teranet said.

The Calgary market posted its first gain in five months, up 0.1% in December, while Montreal gained 0.5%.

Halifax prices jumped most, up 3.6%, but Teranet noted its impact on the overall index was marginal.

The Ottawa market was the only decliner in the month, down 0.4%, and it marked the fourth straight monthly decline.

The index tracks home prices over time for repeat sales, so properties with at least two sales are required in the calculations. The report did not provide actual prices.