Home Prices Head North!
The latest report on Canadian housing prices echoes the findings of local data that suggest a rebound in home sales and prices in the Calgary market.
Released Wednesday, the Teranet-National Bank house price index shows home prices in Calgary edged up one per cent in July, the first monthly gain following 12 consecutive months of decline.
Home prices were still well off pre-recession highs to the tune of 14.6 per cent, however, and 11.1 per cent shy of where they were a year ago. Still, July's gain "signals to me that the market correction is behind us," said Marc Pinsonneault, senior economist for the economy and strategy group at National Bank Financial.
"The important thing is that it is backed by the improvement in market conditions," he said.
MLS data from the Calgary Real Estate Board and others showed increases in August and through September in both the number of single-family home sales and the average price fetched. According to the real estate board, single-family home sales in August were up 9.15 per cent from a year earlier, to 1,277.
The average sale price for a single-family home that month increased three per cent from the year before to $454,130. However, University of Calgary economist Frank Atkins isn't so sure the index's results for July mean a rebound is at hand. It would take several consecutive months of improvements before he'd draw that conclusion.
"I would hope we've turned the corner, because this is consistent with all kinds of other little bits of evidence all over the place, not just housing, but there's not enough of it gelling together for a long enough period of time that I would say we've turned the corner on anything," Atkins said.
Calgary wasn't the only market to experience an uptick in July, with gains in home prices reported in every region covered by the Teranet-National Bank index for the first time in 13 months.
The national composite index showed home prices gained 1.6 per cent in July, marking the third monthly increase, with home prices in Halifax, Ottawa and Montreal reaching pre-recession peaks. On a nationwide basis, Pinsonneault said it could be called a sellers'market, "which is quite a turnaround from the situation that was prevailing at the end of 2008." In July, home prices in Ottawa increased 2.6 per cent; Toronto 2.2 per cent; Vancouver 1.5 per cent;Halifax 0.8 per cent and Montreal 0.7 per cent.
Year-over -year, prices on the composite index were down 5.1 per cent, marking the eighth consecutive 12-month decline.
David Allwright, associate dean of the Bissett School of Business at Mount Royal University, said an across-the board increase across various regions is indicative possibly of a larger trend--but it's just one month.
"I wouldn't call it a trend, but it would be welcome news for the homeowners who are trying to sell," he said.
Courtesy of: GINA TEEL, CALGARY HERALD
Joe Samson, a Calgary REALTOR ® who has been helping clients to achieve their goals in the Calgary real estate market for many years now. Please visit some of his other web pages such as Evergreen real estate.
To Your Real Estate Success!
Print
ShareBe the first to comment on this blog entry!
Leave a Comment
The information provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The Terms of Use Agreement shall not impose a financial obligation on the Registrant or create any representation agreement between the Registrant and the Participant.
All information provided is deemed reliable but is not guaranteed accurate, and should be independently verified.
Disclaimer: Information herein deemed reliable but not guaranteed by the CREB and EREB.
Last updated on: 2012-05-17 00:22:34
Blog Menu
Archives
My Account
-
- Whether you're a buyer or a seller, Joe gives you 100% service and professionalism every time. Joe doesn't deal in fairy tales or pipe dreams - he gives you the straight facts based on his detailed analysis and market reality.
- John Estey
