Post Category: Monthly Reports
September 18, 2024

Teranet-National Bank House Price Index rises in August

MONTH-OVER-MONTH

After adjusting for seasonal effects, the Teranet-National Bank Composite House Price Index, which covers the country’s eleven largest CMAs, grew by 0.6% from July to August, the second consecutive monthly increase. In August, six of the 11 CMAs included in the index recorded growth: Quebec City (+3.9%), Halifax (+3.2%), Ottawa-Gatineau (+1.9%), Vancouver (+1.7%), Montreal (+1.0%) and Toronto (+0.2%). Conversely, decreases were recorded in Hamilton (-0.1%), Winnipeg (-0.7%), Calgary (-1.1%) and Edmonton (-2.6%), while prices remained stable in Victoria during the month. On the other hand, price increases were observed in fifteen of the 20 CMAs not included in the composite index for which data are available in August. The strongest monthly increases were seen in Sherbrooke (+8.1%) and Thunder Bay (+4.1%). Conversely, the biggest declines were in Belleville (-3.9%), Oshawa (-0.5%) and Lethbridge (-0.5%).

Before seasonal adjustments, the Teranet-National Bank Composite House Price Index actually fell by 0.3% from July to August, the first contraction in seven months.

YEAR-OVER-YEAR

The Teranet-National Bank Composite Home Price Index rose by 1.1% from August 2023 to August 2024, less than the 2.0% growth seen the previous month. Increases were observed in eight of the 11 cities making up the composite index in August. Quebec City led the way with a 10.7% year-on-year price increase, followed by Calgary with a 10.0% gain and Halifax with 5.4% growth. As for lagging markets, prices fell in Toronto (-2.6%), Hamilton (-1.2%) and Victoria (-0.2%). As for the other 20 CMAs not included in the composite index, annual gains were observed in nine of them. Among the rising markets, the strongest growth was recorded in Sherbrooke (+16.4%), Thunder Bay (+12.4%) and Trois-Rivières (+12.0%). Conversely, the markets with the biggest declines were Belleville (-3.9%) and Kelowna (-3.8%).

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
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Michael Pertsis
Director, Mortgage Derivatives
National Bank Financial
Phone: 416-869-7124
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