Prices up for repeat home sales in Calgary 3.5% hike from a year ago

CALGARY — Prices for repeat home sales in Calgary rose from a year ago, according to the Teranet-National Bank House Price Index released on Wednesday.

In October, Calgary prices were up 3.5 per cent compared with October 2011 while prices at the national level rose by 3.4 per cent in the 11 markets surveyed.

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.

On a monthly basis, however, prices were down by 0.2 per cent in both Calgary and across the country.

In Canada, it was the 11th consecutive month of deceleration in 12-month inflation.

The index was also the third October monthly decline in 13 years of data, including 2008 when the country was on the verge of recession.

David Madani, Canada economist for Capital Economics, said the recent decline in the sales-to-listings ratio points to home price stagnation ahead in Canada.

“Overall, we still standby our view that Canada housing market is due for a 25 per cent price correction,” he said in a research note. “Home prices have held up so far, prompting economists to declare a soft landing. But we think this is premature.

“We think the pace of home price appreciation generally speaking will stagnate early next year.”

mtoneguzzi@calgaryherald.com

Twitter:@MTone123