The downward trend in Canadian house prices continued in February, registering a year-over-year decline of -4.1%. Leading the retreat were declines in Calgary (-8.1%), Vancouver (-6.4%), Toronto (-5.0%) and Halifax (-0.5%). House prices in two other cities remained positive: Montreal (3.2%) and Ottawa (2.8%).
These readings are from a new index of resale-house price changes, the TeranetNational Bank National Composite House Price Index. It is a less biased measure than changes in average prices because its repeat-sale methodology controls for changes in the mix of houses over time.
On a month-to-month basis, house prices fell -2.0% from January to February. Toronto (-3.1%) dropped the most, followed by Vancouver (-2.0%), Montreal (-1.2%), Calgary (-0.7%), Halifax (-0.5%), and Ottawa (-0.2%).
Since peaking in August, 2008, house prices have fallen -7.4%. Declines for the six cities from their respective peaks were: Calgary (-12.0%), Vancouver (-10.2%), Toronto (-9.0%), Halifax (-4.0%), Ottawa (-3.8%), and Montreal (-1.6%).
Its a good thing its not as easy to walk away from a mortgage as it is in the U.S. Otherwise, Canadas banks would be in more of drubbing along lines of U.S. banks. Still, as it stands, there is going to be a bit of pain.