Whether the change is measured month-to-month or year-to-year, home prices in Canada continue to fall, though two cities are starting to claw their way back, according to a report issued yesterday.
Home prices fell by 6.7 per cent in April compared with the previous year, the fifth-straight month that the Teranet-National Bank national composite house-price index has seen an annual decline -- and the eighth consecutive month-over-month decline. The index is now 8.9 per cent below the peak reached last August.
The index, which measures prices in six Canadian cities, is a stark example of home prices following general economic health, with the biggest drop in the regions hardest-hit by the recession: in Vancouver, prices were down 10.9 per cent from April 2008, in Calgary 9.8 per cent and in Toronto 7.6 per cent.
"Calgary prices have been correcting for well over a year now, since August 2007, and are now down 13.3 per cent from the peak of that month," wrote National Bank senior economist Marc Pinsonneault in the report.
"Calgary has shown monthly declines in 17 of the 20 months posted since then, including the 10 consecutive months from last July through April."
Prices are down 11.9 per cent from the peak in Vancouver and 11.3 per cent in Toronto.
While prices in Ottawa have declined for the last six months and are down 4.8 per cent from their October peak, they're still up 0.6 per cent from last April. Meanwhile, Montreal and Halifax have both gained in each of the last two months and are up year-over-year by 2.4 per cent and 0.2 per cent, respectively.
("Vancouver hardest hit by falling home prices" Source: Financial Post/Vancouver Province)
