Canada prices for repeat sales of homes up again

Reuters  Published: Wednesday, August 26, 2009

TORONTO -- Prices for repeat sales of Canadian homes climbed for a second straight month in June on gains in four of six metropolitan areas, including Vancouver, a report on Wednesday showed.

The Teranet-National Bank National Composite House Price Index, which measures the rate of change of prices for repeat sales of single-family homes in six metropolitan areas, rose 1.5% in June.

"The turnaround is consistent with an improvement in market conditions in recent months for the country as a whole -- more homes have been sold and fewer have been coming on the market," the monthly report said.

Notably, the trend of falling prices in Western Canada slowed in June as Calgary, Alberta, posted a 0.2% dip from the month before, compared with a month-on-month decline in May of 2.2%. It was Calgary's twelfth consecutive monthly decline.

But prices rose for the first time in 11 months in Vancouver, British Columbia.

Montreal, Toronto, and Ottawa were also markets that showed a monthly rise, while Halifax, Nova Scotia, declined.

The data is broadly in line with the latest statistics from the Canadian Real Estate Association. CREA reported that sales of existing homes posted their biggest year-over-year gain in two years and rose for a sixth straight month in July.

Still, Teranet's year-over-year national measure was lower for a sixth straight month, with prices off 6.2%, and down 6.8% from the peak reached in August last year. The Teranet-National index tracks home prices over time for repeat sales, meaning properties with at least two sales are required in the calculations for the index. The report did not provide actual prices.

© Thomson Reuters 2009

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