Canadian Real Estate Price Deflation Hits With Smallest Rise In 10 Years
Canadian real estate price growth may not be what it appears to be, according to a Big Six bank. Teranet – National Bank of Canada House Price Index (TNB HPI) numbers show a prices increased in July. However, the growth rate is down to the lowest level since the Great Recession. The index authors also note price growth is entirely due to seasonal pressures.
The TNB HPI is a price index designed and run by property registry giant Teranet, and National Bank of Canada. The index is like the “benchmark” produced by your local real estate board, but uses land registry data. Local real estate boards use sales through the MLS, and work close to market. That results in two key differences – the quantity and quality of data.
The C11, an index of Canada’s largest 11 markets, showed an increase from last year. The index increased 0.72% in July, compared to the month before. The index is now up 0.44% from last year, putting it at a new all-time high. The 12 month growth has been trending lower, and is now at the lowest it has been since 2009. Growth is still growth though.