Calgary tops nation in price growth for repeat home sales
Nationally, prices at record level
Calgary led the country in the annual increase in prices for repeat home sales.
Photograph by: Ted Rhodes , Calgary Herald
CALGARY - Calgary had the best year-over-year growth rate in prices for repeat home sales in December, according to the latest Teranet-National Bank National Composite House Price Index released Tuesday.
It said Calgary’s annual increase was 6.5 per cent compared with the national composite, of 11 major centres surveyed, at 3.8 per cent as the country returned to a record high level.
The 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.
After Calgary, year-over-year increases were experienced in Vancouver (5.5 per cent), Toronto (4.9 per cent), Hamilton (3.7 per cent), Edmonton (3.6 per cent), Winnipeg (3.4 per cent), Quebec City (1.5 per cent), Ottawa-Gatineau (1.0 per cent) and Montreal and Halifax (0.4 per cent). Victoria prices were down from a year earlier for a 10th consecutive month (4.0 per cent).
Marc Pinsonneault, senior economist with the National Bank of Canada, said the index for Calgary is 171.67 which means prices have increased 71.7 per cent over June 2005. The index is only 1.3 per cent below the its highest ever level in September 2007.
“We still see sales at a very healthy pace going forward,” he said of the Calgary market, adding the forecast price increase in Calgary for 2014 is 3.4 per cent compared with 1.6 per cent nationally.
Ben Brunnen, an economic consultant in Calgary, said the city and provincial economies were among the top performing in Canada in 2013.
“As a result, we saw near record high interprovincial migration numbers which increased demand for living accommodation,” he said.
“Low vacancy rates and high rents in our city, in combination with low unemployment and good wages, have created the right economic conditions for increased housing sales.”
Pinsonneault said the index overall in December was up 0.1 per cent from November.
“With this advance the index has returned essentially to its all-time high of October,” he said.
“Although the composite index was up from the month before in three of the last four months of 2013, prices in all four of those months were down on the month in a majority of the 11 markets (eight in September, October and December, seven in November).”
The index on a monthly basis was led by increases in Edmonton and Vancouver (0.6 per cent) and Toronto (0.4 per cent). December prices were down from the month before in Winnipeg (0.1 per cent), Calgary and Ottawa-Gatineau (0.3 per cent), Quebec City (0.4 per cent), Montreal and Hamilton (0.6 per cent), Halifax (1.2 per cent) and Victoria (1.7 per cent).
It said Vancouver was the only market whose prices reached a new high in December and Toronto prices are almost back to their peak of last August.
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123
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It said Calgary’s annual increase was 6.5 per cent compared with the national composite, of 11 major centres surveyed, at 3.8 per cent as the country returned to a record high level.
The 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.
After Calgary, year-over-year increases were experienced in Vancouver (5.5 per cent), Toronto (4.9 per cent), Hamilton (3.7 per cent), Edmonton (3.6 per cent), Winnipeg (3.4 per cent), Quebec City (1.5 per cent), Ottawa-Gatineau (1.0 per cent) and Montreal and Halifax (0.4 per cent). Victoria prices were down from a year earlier for a 10th consecutive month (4.0 per cent).
Marc Pinsonneault, senior economist with the National Bank of Canada, said the index for Calgary is 171.67 which means prices have increased 71.7 per cent over June 2005. The index is only 1.3 per cent below the its highest ever level in September 2007.
“We still see sales at a very healthy pace going forward,” he said of the Calgary market, adding the forecast price increase in Calgary for 2014 is 3.4 per cent compared with 1.6 per cent nationally.
Ben Brunnen, an economic consultant in Calgary, said the city and provincial economies were among the top performing in Canada in 2013.
“As a result, we saw near record high interprovincial migration numbers which increased demand for living accommodation,” he said.
“Low vacancy rates and high rents in our city, in combination with low unemployment and good wages, have created the right economic conditions for increased housing sales.”
Pinsonneault said the index overall in December was up 0.1 per cent from November.
“With this advance the index has returned essentially to its all-time high of October,” he said.
“Although the composite index was up from the month before in three of the last four months of 2013, prices in all four of those months were down on the month in a majority of the 11 markets (eight in September, October and December, seven in November).”
The index on a monthly basis was led by increases in Edmonton and Vancouver (0.6 per cent) and Toronto (0.4 per cent). December prices were down from the month before in Winnipeg (0.1 per cent), Calgary and Ottawa-Gatineau (0.3 per cent), Quebec City (0.4 per cent), Montreal and Hamilton (0.6 per cent), Halifax (1.2 per cent) and Victoria (1.7 per cent).
It said Vancouver was the only market whose prices reached a new high in December and Toronto prices are almost back to their peak of last August.
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123
