Even in Canada, rise in home prices is slowing
Canada home prices are rising about 5 percent a year, while home prices are falling in the US.
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 both indices are showing a slowing trend with the Case-Shiller actually indicating the first annual declines in ten months while the Teranet data suggests that Canadian home prices have slid in recent months but are continuing to show an annual increase of about 5%.
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