Calgary and Edmonton saw prices for repeat home sales decline in October, according to the Teranet and National Bank National Composite House Price Index, which was released on Thursday.
Calgary prices dropped 0.3 per cent from September and fell by 0.7 per cent in Edmonton. Nationally, the survey of 11 major centres saw the composite price drop by 0.4 per cent.
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.
For Calgary, it was the 10th month without a rise in the last 13 months, “hardly surprising considering the worsening of market conditions over the period,” said the report.
Marc Pinsonneault, senior economist with the National Bank of Canada, said an October decline nationally is not the norm as this was only the fourth in 20 years of index history. It was also the first index decline in eight months.
“The most striking aspect of the retreat is its diffusion. For the first time since December 2014, the component indexes for 10 of the 11 metropolitan markets surveyed were down on the month,” he said.
The monthly change for the index was: Montreal (+0.2 per cent), Victoria (-0.1 per cent), Toronto (-0.2 per cent), Winnipeg (-0.2 per cent), Calgary (-0.3 per cent), Ottawa-Gatineau (-0.4 per cent), Hamilton (-0.5 per cent), Edmonton (-0.7 per cent), Vancouver (-0.8 per cent), Quebec City (-1.0 per cent) and Halifax (-1.0 per cent).
On a year-over-year basis, the composite index rose 2.8 per cent, with gains in Victoria (+5.2 per cent), Montreal (+5.0 per cent), Ottawa-Gatineau (+5.0 per cent), Vancouver (+4.6 per cent), Winnipeg (+3.4 per cent), Hamilton (+2.8 per cent), Halifax (+2.4 per cent) and Toronto (+1.9 per cent). The index lost ground over 12 months in Edmonton (-0.5 per cent), Quebec City (-0.6 per cent) and Calgary (-1.4 per cent).
Calgary prices remain 4.2 per cent down from their peak in October 2014 while Edmonton prices are off 3.6 per cent from their peak in September 2007.
Nationally, prices are down 0.4 per cent from their peak in September of this year.