Home prices dipped in September from August and year-over-year price gains slowed for a 10th straight month in another sign that Canada’s housing market is cooling, the Teranet-National Bank Composite House Price Index showed on Wednesday.
The index, which measures price changes for repeat sales of single-family homes, showed overall prices fell 0.4 percent in September from a month earlier, the third September drop over the past 13 years.
“The other two (September declines) were in 2008, as Canada was entering recession, and during the correction of 2010,” Teranet noted in its report.
The index was up 3.6 percent from a year earlier, for a 10th consecutive month of deceleration in 12-month inflation.
“Today’s print further underscores the moderation in Canada’s housing market,” Mazen Issa, Canada Macro Strategist at TD Securities, said in a research note.
The report is the latest in a string of data suggesting that an extended Canadian upswing in house sales and prices is coming to an end. Click here for the full article.
This drives me crazy. The Teranet index is based upon selling prices from registered (i.e., closed) transactions, but a closing generally takes place 30-90 days after the purchase decision is made and the offer is accepted. That means that the Teranet index is somewhere around 60 days behind the REAL prices, so the reported dip from August to September is actually the normal seasonal dip that happens between June and July. It may well be true that the market is moderating (and I believe that it is), but these data are not any kind of evidence of that!