RISE & REPEAT

Prices rise for repeat home sales in city
By Mario Toneguzzi
Calgary Herald September 29, 2011

A survey of repeat home sales shows Calgary prices increased in July by 2.3 per cent from the previous month.

But the Teranet-National Bank House Price Index, released Wednesday, also indicated Calgary prices are down 0.9 per cent from a year ago - the only centre in the survey to experience a year-over-year price decline.

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 of the index.

The survey also said Calgary's index is still down 8.8 per cent from its alltime high of August 2007 and down 0.9 per cent from its pre-correction peak of August 2010.

For the six centres surveyed, the index was up 1.3 per cent on a monthly basis and 5.3 per cent on an annual basis.

Monthly increases were experienced in Montreal, 0.5 per cent, Ottawa, 1.0 per cent, Toronto, 1.7 per cent, and Vancouver, 0.9 per cent.

Annual increases were experienced in Halifax, 3.3 per cent, Montreal, 6.0 per cent, Ottawa, 4.1 per cent, Toronto, 4.8 per cent, and Vancouver, 8.5 per cent.

Meanwhile, the latest Global Real Estate Trends report released by Scotia Economics said the renewed slowdown in global economic activity is putting further downward pressure on already-weak residential property markets across much of the developed world.

And while Canada's hot housing market also has begun to cool, it remains a "notable outperformer," said Adrienne Warren, senior economist and real estate specialist with Scotia Economics.

Of the nine major developed markets tracked by Scotia Economics, with available second quarter data, only Canada, France and Switzerland registered positive year-over-year real price growth.

The report said Canada's housing market stands out in its resilience and longevity. Average inflation-adjusted existing home prices were up five per cent year-over-year in the April-June period, on par with the first-quarter's pace of appreciation. Data for July and August point to continued firm but stable sales through the late summer, alongside a levelling out in prices.

"Ultralow interest rates will continue to support affordability in the face of record high prices," said Warren. "Nonetheless, heightened economic uncertainty combined with recent signs of a loss of momentum in Canada's jobs market could keep some potential buyers on the sidelines for the time being. On balance, we anticipate a modest slowdown in the volume of sales transactions heading into year-end, alongside relatively flat prices."

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