The Teranet Housing Price Index released their data for May 2009 today. The composite index level for May 2009 is at 120.05 which represents a -6.92% decrease year over year but a 0.72% increase month over month from April. Year to date the composite index has dropped -4.4%.
Posts Tagged ‘Real Estate’Housing Price Index – May 2009Wednesday, July 29th, 2009House Price Index – May 2009Thursday, May 28th, 2009A useful tool for analyzing the health of the Canadian real estate market is the Teranet / National Bank House Price Index which released its May 2009 report today. According to the report housing prices across Canada decreased by 5.8% year over year from March 2008 to March 2009 which extends a 4 month streak of consecutive year over year declines. Since the peak of housing prices in August 2008 prices have also fallen about 8.5%.
The report also breaks out housing price trends for the 6 major metropolitan areas of Toronto, Vancouver, Montreal, Ottawa, Calgary and Halifax.
As you can see from the table above the largest declines in price from the peak have been experienced in Calgary, Vancouver and Toronto. A lot of the economic turmoil that has occurred in the United States over the last year has been related to the rapid correction in their housing market. I saw a stat yesterday that US housing prices have dropped over 33% since the peak a couple of years ago and are continuing to decline according to the latest S&P/Case-Shiller Home Price Index report from May. Some people are of the opinion that Canadian housing prices have not declined as much as US housing prices as a result of stricter mortgage lending regulations imposed by the Canadian Mortgage and Housing Corporation. However one has to question if the Canadian housing market still has a long way to go before it hits the bottom. I will continue to post the lastest trends from the Teranet / National Bank House Price monthly report as they are released to keep you informed of the trends. |
