Small Price Increases in February
By Elli Davis, April 30, 2010
Arrow by Yago Veith
When looking at the price increases for properties, in Canada, February 2010 was a weak month. The new Teranet - National Bank Composite House Price Index clearly demonstrates this, as it shows price increases, in February, have shown the smallest rise when comparing them to the last 10 months.
Home prices only increased by 0.2 percent from January to February 2010. However, compared to the February 2009 figures, there was a 9.9 percent increase, which is quite substantial. That is actually more than the year-over-year rises recorded in December 2009 and January 2010. Regarding specific Canadian cities, the most significant home price increases were reported in Vancouver and Toronto. On the other hand, there was a noticeable decline in prices in Calgary and Ottawa.
The results are not very surprising. As the economy is starting to improve, it is quite normal for there to be little difference, from month to month, to property prices. Surely, they are still high if compared to a not-very-successful 2009, but as I have said a couple of times already, the differences are going to be less and less significant.