Archive for the 'Canadian Real Estate Market' Category

November 26, 2018

There is one real estate opportunity that seems to only be growing in popularity: selling condos.

The Canadian condo market continues to boom. From 2016 to 2018, more than 14% of private mortgages came from condominiums.

In June 2018, residential construction starts across Canada surged to 248,000 units, driven by condos.

“While there has been some moderation in price growth and less speculative demand in the single-family home segment, prices for condominiums have continued to increase rapidly in some markets,” the Bank of Canada noted in its July 2018 Monetary Policy Report.

Condos have also benefitted from tougher mortgage rules and increased interest rates. As house prices have gone up, condos have remained the more affordable option. This means that not only are younger buyers opting for condos over traditional homes, but so are older buyers. For instance, some members of Generation X are choosing to move into condos for a smaller mortgage.

In 2017, three out of every four homes built were multi-family units, compared to 65% the decade before.

If you sell real estate in Canada, the signs are there that this is the time to consider selling condos, too.

Should you decide to join the condo market, or ramp up your efforts, here are some best practices to keep in mind:

  • Look at property details. Just like you would request a property report for a single-family dwelling, you should do the same for a condo. For instance, with a GeoWarehouse report you can see all condo units in a building, search by level, look up related PINs, access the full legal description, and more.
  • Don’t only consider constructed condos. Look also at pre-construction condos. New condo buildings are being constructed quickly, especially in larger urban areas like Toronto and Vancouver. Sell clients on making a decision early to beat the rush.
  • Condos aren’t just for younger buyers. As we mentioned above, condos used to be the millennials’ residence, but that’s not always the case these days. More and more older generations are choosing condos amid new mortgage rules, increased interest rates, or wanting to stay in an urban area. While millennials are certainly still a big market, they’re not the only market.
  • Look at what else the building offers. There may be additional assets included with a condo sale, like a parking space or storage lockers. Unlike a traditional dwelling type, a condo can come with other perks, too — security guards, an on-site gym, a luxury view, etc. Play up these features in your sales pitch.
  • Focus on unique features. Condos are a space sacrifice, especially if a potential buyer is used to a larger home. But because they are rising in popularity, there are many more options for comfortable condo living today, like urban agriculture, unique storage ideas, and two-in-one furniture items. Don’t be afraid to get creative with your staging.Access condo status certificates online. There is no need to request your condo status certificates by fax anymore. Instead, use a tool like GeoWarehouse to do it all online.

While the condo boom is continuing to thrive, it makes sense to take advantage if it’s in your area. GeoWarehouse can help you stay on top of the latest condo trends and access property information.

Learn more by calling 1-866-237-5937 or visit www.geowarehouse.ca.

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November 23, 2018

The Canadian real estate market is in a state of fluctuation, which can make determining a listing price difficult to say the least.

Between rising interest rates, mortgage stress testing regulations, uncertain house prices, increased competition, and the like, there are many factors that might be affecting your usual process for determining property value.

That said, there are several practices that you can use to set a listing price no matter what is happening in the Canadian housing market. Here are our top picks.

  1. Assess the Property Details

This is step number one because it should be on your list regardless of market conditions. You need to understand the property details. For instance, what year was the home built? What data is included in the Land Registry?

In order to start thinking about your listing price, you need to know the answers to these questions and more.

  1. Get an AVM

You may have considered getting an appraisal done — this can be a great idea. But have you thought about an automated valuation model (AVM) report as well?

An AVM report can confirm home value, ownership, and other details quickly and efficiently. It can estimate property value by comparing and analyzing property characteristics against public record data.  It doesn’t replace an appraisal, but it is a good companion to one.

While an AVM can’t review interior and exterior property conditions, some include street view imagery that can help identify issues with exterior conditions, such as property boundary discrepancies. It’s great to leverage automation and historical data analysis to generate the latest information on pricing and ownership and create a big picture report.

  1. Consider the MPAC Assessment

MPAC is the largest assessment jurisdiction in North America. It determines revenue requirements, municipal tax rates, and property tax collection for the Government of Ontario.

An MPAC assessment isn’t always the same as a property appraisal, and often listing prices are different from MPAC’s valuation. That said, it is still valuable information that can be used in your determination.

  1. View the Sales History

Along with the property details, you will also want to consider the sales history. While today’s market may be very different from the last time this house sold (particularly if it is an older home), that data is still important to review.

  1. Look Up Comparable Sales

One of the best ways to determine home value is to see how comparable properties are selling. You can get a real-time view of what similar houses have sold for and use that to set your listing price.

You can also narrow your search by neighbourhood to specifically understand the area where you are selling. Certain regions will be more desirable based on factors like school proximity, parks, shopping areas, and the like. This will stay in style even with a market shift.

  1. Use a House Price Index

The Teranet-National Bank House Price Index is released every month with up-to-date information on house prices across Canada. This digs into 11 different markets and the house price trends those regions are experiencing.

This is important for you to know when making your assessment.

  1. Examine Market Insights

In a shifting real estate market, you want to stay on top of the latest real estate trends. For instance, if you know that condos are some of the most popular dwelling types for millennials, and you are trying to set a listing price for a condo in an area that appeals to millennials, that will help make your decision.

The Teranet Market Insights Report is released regularly and contains data that you can use for your property valuation needs.

While it may be simpler to set listing prices during non-turbulent housing market conditions, it’s still possible to do so in more uncertain times. Be sure to do your due diligence and assess information from multiple sources. Trends can change so fast that you need to stay on top of the data.

Luckily, GeoWarehouse makes it easy to stay informed up-to-the-minute. Our property reports take data from the Province of Ontario Land Registration Information System (POLARIS), so you can trust the reports you receive are accurate and timely. They are also available almost instantly, so you can make a decision with the latest figures.

Learn all about our GeoWarehouse reports today. Call 1-866-237-5937 or visit www.geowarehouse.ca.

Want more information on determining a listing price? Download our free eBook, Digital Property Evaluation in 1-2-3! Get your copy here: http://www2.geowarehouse.ca/property-evaluation-general/.

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October 24, 2018

The Bank of Canada overnight rate has gone up to 1.75% after an October 24, 2018 announcement.

This is the fifth interest rate increase since July of 2017, and the third in 2018.

The Bank of Canada (BOC) cited robust U.S. and Canadian economies and the new US-Mexico-Canada Agreement (USMCA) as some of its reasons for the increase.

Other justifications included business investment and export projections, a stable inflation rate, and steady household spending.

There was only one mention of the Canadian housing market in the announcement.

“Households are adjusting their spending as expected in response to higher interest rates and housing market policies,” the BOC stated.

“In this context, household credit growth continues to moderate and housing activity across Canada is stabilizing. As a result, household vulnerabilities are edging lower in a number of respects, although they remain elevated.”

The October 24 rate increase was expected by many, especially once the USMCA deal was approved.

The BOC indicated there will be more increases on the horizon, though perhaps not as many as originally thought.

“In determining the appropriate pace of rate increases, Governing Council will continue to take into account how the economy is adjusting to higher interest rates, given the elevated level of household debt,” the BOC said.

There is one more interest rate announcement scheduled for 2018, on December 5.

The effects of the hike on real estate interest rates remain to be seen.

GeoWarehouse has tools for real estate professionals that can help navigate interest rate changes. Research the latest property data, comparable sales, and more.

Call 1-866-237-5937 or visit www.geowarehouse.ca to learn more.

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Have you been working with real estate deals financed using syndicated mortgages? If so, it may be time to re-evaluate.

Syndicated mortgages are investments where a developer finds several private lenders to invest money in a property, instead of getting a loan through a bank.

Syndicated mortgages have been linked to mortgage fraud, including more than 120 people in the Greater Toronto Area who allegedly lost millions during a syndicated mortgage deal in 2017, as reported by the CBC.

In February of 2018, the Financial Services Commission of Ontario (FSCO) issued $1.1 million in fines as part of a settlement with four mortgage brokerage companies involved with syndicated mortgages tied to real estate projects for Fortress Real Developments Inc. and revoked five broker licenses.

The Government of Ontario has created new regulations to hopefully minimize these types of occurrences. As of July 1, 2018, provincial regulatory changes to syndicated mortgage transactions in Ontario are in effect under the Mortgage Brokerages, Lenders, and Administrators Act. Under the new rules, non-qualified syndicated mortgages will have to comply with expanded requirements.

What is a qualified syndicated mortgage?

Let’s first look at what counts as a qualified syndicated mortgage:

  • Negotiated or arranged through a mortgage brokerage.
  • Secures a debt obligation on a property that is used primarily for residential purposes, includes no more than a total of four units, and (if used for both commercial and residential purposes) includes no more than one unit that is used for commercial purposes.
  • At the time the syndicated mortgage is arranged, the amount of debt it secures, together with all other debt secured by mortgages on the property that have priority over, or the same priority as, the syndicated mortgage, does not exceed 90% of the fair market value of the property relating to the mortgage, excluding any value that may be attributed to proposed or pending development of the property.
  • Limited to one debt obligation whose term is the same as the term of the syndicated mortgage.
  • The rate of interest payable under it is equal to the rate of interest payable under the debt obligation.

A syndicated mortgage that secures a debt obligation incurred for the construction or development of property is not qualified.

What’s changing?

As of July 1, 2018, mortgage brokerages dealing with non-qualified syndicated mortgages (anything not complying with the list above) will be required to:

  • Collect and document specific information related to a potential investor’s or lender’s financial circumstances, needs, objectives, risk tolerance, and level of financial and investment experience using a new FSCO form.
  • Undertake and document a suitability assessment, using specific criteria, for each potential investor or lender using a new FSCO form.
  • Collect and document expanded disclosure information using a new FSCO form. This includes information regarding the property appraisal and, in the case where the borrower is not an individual, the borrower’s financial statements.
  • Observe a $60,000 limit on non-qualified syndicated mortgage investments over a 12-month period for investors or lenders who are not part of a ‘designated’ class of investors and lenders. The regulation defines the designated classes of investors and lenders as those that have already met higher income and asset tests.
  • Report written complaints received by the brokerage related to non-qualified syndicated mortgages to FSCO’s Superintendent of Financial Services within 10 business days of receiving the complaint.

What real estate sales professionals can do

If you are aware of a deal being financed with a syndicated mortgage, do your due diligence. Make sure that it’s compliant with the above regulations.

You can also independently verify the property value. For example, our GeoWarehouse tools make it easy to validate that information and more.

View the full text of the new FSCO regulations here: https://www.fsco.gov.on.ca/en/mortgage/Pages/smi-amendments.aspx

With the FSCO cracking down on syndicated mortgages, it’s more important than ever to exercise due diligence. GeoWarehouse can help.

Learn more about how our tools can help detect mortgage fraud. Visit www.geowarehouse.ca.

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The Bank of Canada (BOC) interest rate is remaining at 1.5% for September of 2018.

The BOC increased interest rates from 1.25% to 1.5% in July of 2018 — the fourth increase in a year. On September 5, 2018, the BOC announced that interest rates would stay at 1.5% for now.

High cost of consumer price index inflation due to gasoline prices, the U.S. economy, and uncertain trade policies all influenced the BOC’s decision — as did the Canadian real estate market.

“Meanwhile, activity in the housing market is beginning to stabilize as households adjust to higher interest rates and changes in housing policies,” the BOC said in the September 5 announcement.

“Continuing gains in employment and labour income are helping to support consumption. As past interest rate increases work their way through the economy, credit growth has moderated and the household debt-to-income ratio is beginning to edge down.”

The Teranet-National Bank House Price Index has seen some stabilization over the summer months, although that stabilization has largely been seasonal.

The new mortgage stress test for uninsured mortgages, introduced on January 1, 2018, appears to have affected the market. Mortgage Professionals Canada “Report on the Housing and Mortgage Market in Canada” for July 2018 stated that an estimated 100,000 Canadians have been prevented from buying a home as result of stress testing.

Statistics Canada reported that the Canadian household debt-to-income ratio decreased to $1.68 for every $1 earned as of June 2018, although that figure is still higher than it was a year earlier.

The BOC said in the September 5 announcement that interest rates will continue to increase gradually. Many economists are predicting at least one more hike in 2018 — likely in October.

The next interest rate announcement is scheduled for October 24, 2018.

The property data tools from GeoWarehouse can help real estate professionals adapt to changing housing interest rates and more. Contact us today. Call 1-866-237-5937 or visit www.geowarehouse.ca.

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A recent Huffington Post Canada article reported on a compelling phenomenon: “recycled” real estate listings that could be skewing Canadian housing market data.

According to the Huffington Post, a subscriber-only-access article in the Globe and Mail first revealed this trend. Real estate agents in Vancouver are “recycling” listings — i.e. pulling homes that aren’t selling off the market, and then bringing them back as “new” listings at a lower price.

In turn, these “recycled” listings could be skewing some real estate data. For instance, there are some real estate market data reports that rely on MLS listings and sales for their findings. The issue with doing this is, there can be discrepancies between the MLS data, and what is actually happening in the housing market.

For instance, MLS sold data might show that a sale has closed, but that data is taken weeks before the transfer. Something could change in those critical weeks, meaning the data would no longer be accurate.

The ‘recycled’ real estate listing trend could be skewing data the same way. It makes it seem as if houses are selling quickly, when they’re not. It also makes it appear as though houses aren’t seeing price cuts, when they are.

“Because they are recycling listings, the data consistently paint a prettier picture,” Mortgage Sandbox CEO David Stroud told the Globe.

Huffington Post also said this could have a problematic effect on homeowners, who have no way of knowing how often a home has been listed, so they might think it’s a new listing that will sell quickly. This data manipulation could be pushing people to spend more on a home than they otherwise would have.

What do you think — is this part and parcel of the real estate industry? Or is it an unethical practice that should be stopped?

Whether your opinion of the practice is positive or negative, there is still the real risk that it could be skewing reported real estate data. If you are relying on Canadian housing market trends, the information you’re looking at might be inaccurate and could lead you down the wrong path.

With GeoWarehouse, we have real estate data you can trust. Our data is driven by definite sales registered in land registries. In Ontario, for instance, it’s the Province of Ontario Land Registration Information System (POLARIS). This is the most accurate data available.

You can also access the Teranet-National Bank House Price Index, which uses POLARIS data for the most accurate housing numbers. See the latest HPI report here.

Read the Huffington Post Canada article in full here.

Want access to GeoWarehouse’s real estate data? Become a subscriber. It’s easy — just give us a call at 1-866-237-5937 or visit www.geowarehouse.ca.

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July 11 and July 12, 2018 were busy days for the Canadian real estate market.

On July 11, 2018 news broke of a Bank of Canada interest rate increase to 1.5% — the highest interest rates have been since December of 2008.

Then, on July 12, 2018, the Teranet-National Bank House Price Index came out showing that house prices are making up lost ground in the second half of 2017.

While unrelated, both announcements share a commonality: they indicate what could be on the horizon for the Canadian housing market.

In its July 11 announcement, the Bank of Canada (BOC) referenced Canadian housing trends.

The BOC stated that household spending is being dampened by higher interest rates and tighter mortgage lending guidelines. It referenced recent data suggesting housing markets are beginning to stabilize following a weak start to 2018.

The following day, the House Price Index released, showing the same stabilization. The composite index in June 2018 was up 0.9% from May 2018, indicating that some of the ground lost in the second half of 2017 is being recovered.

However, even though the numbers are showing recovery, the index increase is still weak for this time of the year. According to the June 2018 report, written by National Bank of Canada senior economist Marc Pinsonneault, if the Index were purged from seasonal patterns, it would have been flat over the past three months.

Different types of dwellings are also affecting the Index. For instance, condo prices have risen rapidly in Toronto and Vancouver since the beginning of 2018 (after seasonal adjustment, up 7.8% and 16.3% annualized respectively).

Prices for other types of dwellings have held their ground, which could be reassuring in the wake of higher interest rates and stricter mortgage rules, such as the B20 lending guidelines.

In summary, the good news is that:

  • Canadian household debt levels are going down. This is also good for lenders who are stress testing mortgages and looking at other components, such as the Gross Debt Service Ratio (GDS) – the amount of total housing-related debt a person carries – and the Total Debt Service Ratio (TDS) – amount of total debt a person carries.
  • Even as interest rates rise, and mortgage regulations become stricter, house prices for more traditional dwelling types are holding steady.
  • Condo prices are still on the rise, indicating that they continue to be a popular and affordable.
  • While not at a record high, the House Price Index has shown stabilization. Only time will tell if this trend continues, but many economists are predicting it will.

The next BOC rate announcement is set for September 5, 2018. It is appears unlikely, however not impossible, for there to be another increase at that. The Royal Bank of Canada predicted in July of 2018 that the BOC will continue to raise interest rates to 2.25% by the first half of 2019, but growing household income will provide some offset.

GeoWarehouse’s tools can help you continue to assess property information in a changing real estate market. A neighbourhood search can tell you the property values of a certain area. You can also find condo buildings, demographics, property information, and more.

Even as uncertainty remains, our real estate technology will help you stay agile and provide your clients with their best options.

Learn more today about how we can help. Visit www.geowarehouse.ca.

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Determining a property’s list price can be hard at the best of times, but when the real estate market is constantly shifting, it’s even trickier. In today’s rocky Canadian housing market, how do you establish a house price?

With increasing interest rates, new Canadian mortgage rules, and a record-high level of Canadian household debt, setting a list price might feel a little like shooting in the dark. But having a good understanding of your target market, the area where you’re selling, and using technology to your advantage can make the process a lot easier.

  1. Look at Comparable Sales and Listings

Understanding the Canadian real estate market is your best bet to establishing a list price, even in rocky economic times. Pulling data of every similar home in the neighbourhood that was listed in the past three months can give you a good idea of what other houses are selling for.

If you’re pulling comparables, also keep in mind:

  • The distance — your search shouldn’t be too broad unless you’re selling in a more suburban or rural area.
  • Neighbourhood dividing lines and barriers, such as railways, a major road, a highway, etc.
  • Similar square footage.
  • Similar home age.

When you’re assessing comparable listings, also question the sales history. How many days were they on the market? Compare the original list price to the final sales price and the final sales price to the actual sold price.

The GeoWarehouse Comparable Sales report can give you this information at your fingertips.

  1. Look at the Property’s Sales History

How much has this house sold for in the past? Whatever the results are, file them away with a grain of salt. Remember, the housing market might have been completely different then, but it is still valuable information to know.

The GeoWarehouse Property Details report contains a detailed sales history that will help with your decision.

  1. Consider the Neighbourhood Desirability

Is this an up-and-coming location? Is it close to schools and parks? Is it near a highway or busy road? These can all play a role in how you price the home and can make a less attractive property more appealing and a more attractive property less appealing.

GeoWarehouse Aerial Imagery can give you a birds-eye-view look at the neighbourhood that you can show potential buyers.

  1. Honestly Assess the Property Value

Different tools can give you an appraisal of the property’s worth. For instance, with GeoWarehouse you can access the Property Details report, which includes Land Registry information and MPAC assessment data. When you have a value in mind, compare it with the comparable sales and honestly assess the property you are looking at.

  1. Know Your Target Market

Where do your leads come from? What types of marketing do you have in place and what might work for this property? If you’re not sure, this could be a sign that you need to do more research. Tools like the GeoWarehouse Demographics Report can help you identify important neighbourhood information, such as the age distribution, average household income, and more. Every property is different of course but understanding your potential buyers can go a long way towards establishing list price.

The other factor to consider are the changing market conditions themselves. Analysis such as the Teranet Market Insights report can give you an idea of what types of properties are selling where and an overview of the Canadian housing market as a whole.

The next time you’re trying to establish house prices for listing, access all of GeoWarehouse’s reports, images, and data at www.geowarehouse.ca and find out how you can become a subscriber.

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Looking at news outlets, the current state of the Canadian real estate market can seem pretty doom and gloom. Interest rate increases combined with new Canadian mortgage rules and a declining housing market have presented challenges, to be sure, but could there also be an advantage?

While the housing market has been slowing so far in 2018, the flipside is that houses have become more affordable. For instance, the Teranet-National Bank House Price Index reported in the final quarter of 2017 that the housing affordability measure fell 0.2 per cent. This is the first time that’s happened since the second quarter of 2015.

Even as we are seeing interest rate increases and stricter Canadian mortgage rules, Canadian wage growth is going up. Increased wages and more affordable housing could definitely present real estate sales opportunities if your target market is affected.

Changes to the Canadian real estate market can also be navigated with flexibility, for example, shifting your target market to adapt to new trends. The Teranet Market Insights report March 2018 edition reported that condo demand continues to be high, particularly in Toronto. Not only that, but new condo development is also remaining strong.

According to the Canadian Press, some families are actually choosing smaller living over larger suburban dwellings. Families of five are living in 1,000 sq. ft. condos, or 950 sq. ft. houses. The right buyer might be tempted to consider some out-of-the-box housing arrangements.

BuzzBuzz News Canada reports that there is still more demand in the Canadian housing market than supply, meaning many real estate agents are seeing more buyers than sellers. If that’s the case for you, you can take advantage. Use property valuation tools to identify selling opportunities in your target area and identify new leads.

Another advantage of these changes is that real estate sales professionals aren’t the only ones dealing with them. Mortgage brokers and mortgage lenders also have to work with the same constrictions and they’re developing products to meet shifting demands. You can take advantage of this by making these industry connections. When you know how mortgage professionals are adapting, you can have more options to offer your clients who might be seeking financing.

It’s difficult to say exactly where the Canadian real estate market is headed in 2018, but you can find a way to adapt and perhaps profit even more from recent changes. Understanding your target market is key to identifying new opportunities. Technology, like GeoWarehouse, puts vital property data at your fingertips so you can quickly and efficiently access the information you need to know when you need to know it.

Not only that, but the GeoWarehouse store also provides important fraud detection resources, like Parcel Registers* and Instrument Images*. These tools let you find out whether there’s an encumbrance, such as a lien or an undisclosed mortgage, on a property so you’re not caught unaware.

Not a GeoWarehouse subscriber? You can become one today. It’s easy — just visit www.geowarehouse.ca to learn more.

* An official product of the Ontario government pursuant to provincial land registration statutes.

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After a flat March, the Teranet–National Bank National Composite House Price IndexTM  rose 0.2% in April. In the 20-year history of the index it was the fourth-smallest April advance, after those of 2009 (a recession year), 2013 and 2015. There were nevertheless gains in eight of the 11 metropolitan markets surveyed: Quebec City (1.5%), Hamilton (0.8%), Halifax (0.6%), Vancouver (0.3%), Edmonton (0.3%), Toronto (0.2%), Montreal (0.2%) and Victoria (0.2%). The index for Calgary was flat. Indexes for the remaining two markets were down on the month, Ottawa-Gatineau −0.1% and Winnipeg −0.8%.

It was the 14th rise in 16 months for the Vancouver index, which has set records in each of the last five months. However, its recent gains have been smaller than before, which is consistent with the loosening of market conditions apparent from data published by the Real Estate Board of Greater Vancouver. The cooling of the Vancouver index advances has been the most obvious for dwellings other than condos. The Toronto index is down 7.1% from its peak of last July, its decline concentrated in dwellings other than condos. The raw index* for Toronto declined similarly over that period, both for the market as a whole and for the non-condo segment. The index for neighbouring Hamilton market is down 5.2% from August, with declines in six of the last eight months. The index for Ottawa-Gatineau has declined in six of the last seven months, for a cumulative retreat of 2.4% since September. For Calgary it was a fifth consecutive month without a gain. The index for Edmonton has retreated in five of the last seven months. In sum, the composite index in April was down 1.6% from its peak of last August, although it stabilized towards the end of last year.

Thanks to strong advances from April to August last year, the composite index was nevertheless still up 5.6% from a year earlier. It was the smallest 12-month rise since September 2015 and a 10th consecutive deceleration from last June’s record 12-month gain of 14.2%. The April 12-month rise was led by Vancouver (15.9%) and Victoria (11.0%), the only markets with 12-month advances exceeding the countrywide average. They were followed by Halifax (5.3%), Hamilton (4.5%), Montreal (3.9%), Ottawa-Gatineau (3.0%), Quebec City (2.4%), Toronto (1.9%), Winnipeg (1.2%), Edmonton (0.4%) and Calgary (0.2%).

In addition to the Toronto and Hamilton indexes included in the composite index, indexes exist for the seven other metropolitan areas of the Golden Horseshoe. In April, six of the seven (Guelph, Brantford, Kitchener, St. Catharines, Barrie and Oshawa), like Toronto and Hamilton, were well below their various peaks of July, August or September 2017. The exception was Peterborough. Indexes not included in the composite index also exist for seven markets outside the Golden Horseshoe, five of them in Ontario and two in B.C. The indexes for these last two, Abbotsford-Mission and Kelowna, like those for Vancouver and Victoria, were at record highs in April. The same was true of the indexes for Windsor and Thunder Bay. The indexes for Sudbury, Kingston and London were only slightly off peak.

The historical data of the Teranet–National Bank House Price Indices™ are available at www.housepriceindex.ca.

 

 

The Teranet–National Bank House Price Index™ is estimated from sale prices recorded in 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; a complete description of the method is given at www.housepriceindex.ca.

The Teranet–National Bank House Price Index™ is an independently developed representation of average home price changes in 11 metropolitan areas: Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Toronto, Ottawa-Gatineau, Montreal, Quebec City and Halifax. The national composite index is the weighted average of the 11 metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census**, the aggregate value of occupied dwellings in the metropolitan areas covered by the indices was $1.416 trillion, or 64% of the Canadian aggregate value of $2.207 trillion.

All indices have a base value of 100 in June 2005. For example, an index value of 130 means that home prices have increased 30% since June 2005.

*Note on methodology: The current-month data used to calculate the index are those of closed sales registered in the provincial land registry. To illustrate the home price trend, the published indexes of the 11 metropolitan markets entering into the Teranet–National Bank Composite House Price Index™ are moving averages of the last three months of raw indexes, a procedure that evens out month-to-month fluctuations. More granular monthly data are available upon request, subject to subscription fees. For our full methodology, please visit www.housepriceindex.ca

** Value of Dwelling for the Owner-occupied Non-farm, Non-reserve Private Dwellings of Canada

By:

Marc Pinsonneault

Senior Economist

Economy & Strategy Team

National Bank Financial Group

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

 

 

 

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