Post Category: Monthly Reports
November 17, 2023

Teranet-National Bank House Price Index down in October

MONTH-OVER-MONTH

After adjusting for seasonal effects, the Teranet-National Bank Composite House Price Index, which covers the country’s eleven largest CMAs, declined by 0.4% from September to October, the first decrease following five consecutive monthly increases. In October, four of the 11 CMAs included in the index experienced decreases: Toronto (-1.6%), Edmonton (-1.2%), Vancouver (-1.1%) and Ottawa-Gatineau (-1.1%). Conversely, notable increases were recorded in Montreal (+3.7%), Halifax (+1.1%) and Winnipeg (+1.0%). On the other hand, decreases were observed in 11 of the 20 CMAs not included in the composite index for which data are available in October. The biggest monthly decreases were seen in Saint John (-5.3%), Trois-Rivières (-3.3%) and London (-2.5%). Conversely, the biggest increases were in Moncton (+4.6% after a 2.3% drop the previous month), Kingston (+3.8%) and Peterborough (+2.6%).

Before seasonal adjustments, the Teranet-National Bank Composite House Price Index fell by 1.0% from September to October, the second consecutive monthly decline.

YEAR-OVER-YEAR

The Teranet-National Bank Composite Home Price Index rose by 2.8% from October 2022 to October 2023. Increases were observed in 9 of the 11 cities making up the composite index in October. Halifax led the way with a 12.5% year-on-year price increase, followed by Victoria with a 6.5% gain and Quebec City with 6.3% growth. As for lagging markets, prices fell in Edmonton (-3.6%) and Ottawa-Gatineau (-0.5%). As for the other 20 CMAs not included in the composite index, annual gains were observed in 16 of them. The strongest growth was recorded in Moncton (+13.0%) and Sherbrooke (+9.4%), while the steepest declines were in London (-2.1%) and Barrie (-0.9%).

 

Metropolitan area % change m/m % change m/m, SA % change y/y From peak Peak date
Report By:

Daren King
Economist
Economics and Strategy Group
National Bank of Canada

 

The Teranet-National Bank House Price Index™ thanks the author for his special collaboration on this report.

The historical data of the Teranet-National Bank House Price Index™ is available™ at www.housepriceindex.ca.

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; for a complete description of the methodology, contact us.

The Teranet-National Bank House Price Index™ is an independently developed representation of average home price changes in eleven metropolitan areas: Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Toronto, Ottawa-Gatineau, Montreal, Quebec City, Halifax. The national composite 11 index is the weighted average of the eleven metropolitan areas.

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The Teranet-National Bank House Price Index™ is an independently developed representation of the rate of change of Canadian single-family home prices.  The measurements are based on the property records of public land registries. The monthly indices cover eleven Canadian metropolitan areas: Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Toronto, Ottawa-Gatineau, Montréal, Québec City, Halifax. The metropolitan areas are combined to form a Canadian composite index.

In addition to their informational role, the Teranet-National Bank House Price Index™ was developed to be a benchmark for financial professionals. Teranet and NBC offer licenses covering all index-linked products.

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For further information about upcoming reports, please contact:

Derek Tinney
Director, Product
Teranet Inc.
Phone: 604-751-2252
Email:
Michael Pertsis
Director, Mortgage Derivatives
National Bank Financial
Phone: 416-869-7124
Email: