One of the best studies that is done on the market today to test the health of the housing report, is the new House Price Index developed by Teranet in partnership with National Bank.
The new House price index (www.housepriceindex.ca) was launched several months ago and what makes this index so powerful is that they do not use average price data to look at house price appreciation, but use a paired sales approach to show the sales activity for similar homes.
In July, The House Price Index showed positive signs by posting a third consecutive gain in house price appreciation. The chart below shows the information on the index for the Toronto region:
Metropolitan area Index level
|Market||July 09 index||
month over month
year over year
|year over year from Peak||Peak Date|
Source: Teranet, National Bank House Price Index - Sept/09
The index shows that house prices while off 5.5% from the peak in August of 2008, are now showing signs of recovery and are starting to make back some of the earlier losses. In the months of August and September, the index will show more positive signs since as a local Realtor we have seen unprecedented activity in the Oakville & GTA market.
What does this index mean for the average buyer or seller:
- House prices are on the rebound in Oakville and the GTA
- Market activity has been strong and properties have been selling quickly
- Housing market is looking more positive which will make buyers and sellers more active in the coming months and year
Now is a good time to buy or sell a home. For more information on how I can assist you, please contact me at email@example.com or 905-693-9575
BRIAN BELL - MBA
Realty Executives Plus Ltd., Brokerage