Canadian real estate avoided US boom-bust. Now what?

Canada has had a stronger rebound,. But, as in the US, real estate appreciation is slowing.

By , Guest blogger

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    Canada's housing prices haven't gone through the bome and bust that America's have.
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Teranet/National Bank of Canada produces a complete line of Canadian home prices indices using the same repeat sale methodology as the S&P/Case-Shiller allowing for an interesting comparison against home prices here in the US.
 
 Mashing-up the Teranet/NBC Composite-6 index to the S&P/CSI Composite-10 both rebased to the year 1999 provides a pretty decent “apples-apples” comparison as both the Teranet/NBC Composite-6 and S&P/CSI Composite-10 share the purpose of narrowly including just the top largest metros for their respective country.
 
 Looking at the chart (click for full-screen dynamic version) you can see that while the Teranet/NBC index is currently showing a pretty exceptional rebound with annual percentage increases of nearly 10.39%, it still has a ways to go in order to match the pre-bust US levels.
 
 Further, both series are showing a notable slowdown to price appreciation on a year-over-year basis.
 
 Browse the full catalog of Canadian home price indices provided by Teranet/National Bank of Canada.
 
 

U.S. vs Canadian Housing Price Mashup!: August 2010

 

Recommended: Could you pass a US citizenship test?

from Paper Economy - A US Real Estate Bubble Blog by SoldAtTheTop

Teranet/National Bank of Canada produces a complete line of Canadian home prices indices using the same repeat sale methodology as the S&P/Case-Shiller allowing for an interesting comparison against home prices here in the US.
 
 Mashing-up the Teranet/NBC Composite-6 index to the S&P/CSI Composite-10 both rebased to the year 1999 provides a pretty decent “apples-apples” comparison as both the Teranet/NBC Composite-6 and S&P/CSI Composite-10 share the purpose of narrowly including just the top largest metros for their respective country.
 
 Looking at the chart (click for full-screen dynamic version) you can see that while the Teranet/NBC index is currently showing a pretty exceptional rebound with annual percentage increases of nearly 10.39%, it still has a ways to go in order to match the pre-bust US levels.
 
 Further, both series are showing a notable slowdown to price appreciation on a year-over-year basis.
 
 Browse the full catalog of Canadian home price indices provided by Teranet/National Bank of Canada.

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The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here.To add or view a comment on a guest blog, please go to the blogger's own site by clicking on paper-money.blogspot.com.

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