The levels and monthly changes in Canada house prices varied considerably across metropolitan markets in June 2009, according to data released by the Canada Mortgage and Housing Corporation in July (CMHC).
As the graph below shows, average unit selling prices of all newly completed and unabsorbed single-detached and semi-detached dwellings in June 2009, varied from CAD 158,800 in Moncton to CAD 962,100 in Vancouver. The second and third most expensive metropolitan markets in terms of newly completed single-detached and semi-detached dwellings were Victoria and Kelowna were prices averaged CAD 773,700 and 755,700, respectively.
The average prices for the other Canada metropolitan markets are presented in the graph below. For some metropolitan markets for which the data sample was very small no prices were reported.
Average Unit Selling Prices of All Newly Completed And Unabsorbed Single-Detached and Semi-Detached Dwellings in June 2009
Source: Canada Mortgage and Housing Corporation
Change in Canada house prices in June 2009 varied also singificantly across metropolitan areas. CMHC reported average prices for May 2009 as well, so it was possible to calculate changes in these prices in the month of June 2009. When looking at changes through time in average prices we need to be very cautious as these changes may not reflect actual changes in market prices but rather significant changes in the quality mix of properties in the sample from one period to another. For example, a large increase in average prices from one period to the other maybe due to the fact the in the second period the property sample was dominated by higher quality properties that are priced higher compared to the property sample in the first period. The most accurate method to compare housing price changes through time is through constant-quality indices that control for the effect of changes in sample quality mix on prices.
With these reservations, we present in the graph below the changes in average unit selling prices of all newly completed and unabsorbed single-detached and semi-detached dwellings in June 2009 in Canada's metropolitan areas. As this graph indicates, changes in Canada house prices varied from -4.7% in Saint John to 14% in Ottawa. Prices increased in the majority of markets. We are very suspicious of the very high increase of 14% increase in Ottawa, and it is quite likely that a part (small or big) of it may be due to the change-of-sample-quality effect.
Changes in Average Unit Selling Prices of All Newly Completed And Unabsorbed Single-Detached and Semi-Detached Dwellings in June 2009
Sources: Canada Mortgage and Housing Corporation; Property-Investing.Org
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