Teranet Inc. and National Bank launch a national house price index and indices for six Canadian cities
National Bank Financial Group and Teranet are pleased to announce the launch of the Teranet – National Bank House Price IndexTM, the first independent representation of the rate of change of Canadian single-family home prices based on the “repeat sale methodology.” Indices for six Canadian metropolitan areas are published monthly on www.housepriceindex.ca. The indices are combined to form a Canadian Composite Index. As an independent benchmark, the index will be used to sell financial products connected to the housing market while giving investors access to the residential real estate market as an asset class.
“These index-linked products will provide a much needed tool for managing the risks related to the wide spectrum of economic agents exposed to Canadian house price fluctuations, while giving investors access to Canadian housing as an asset class. The existence of a reference index for professionals in the finance industry generates great potential for creating new products,” said Simon Côté, Managing Director, Property Derivatives at National Bank.
“Canadians will now be able to follow real changes in house prices in their city thanks to the reliable and independent sources of information used by Teranet: public land registries,” added Chris Valentine, Director, Corporate Development at Teranet Inc. “These indices provide an excellent opportunity to maximize Teranet’s expertise in real estate information and data management in association with National Bank, a leader in the derivatives sector.”
The Teranet – National Bank House Price IndexTM is the first independent, transparent and verifiable representation of the rate of change of Canadian single-family home prices. The measurements are based on the property records of public land registries. The monthly indices cover six Canadian metropolitan areas: Calgary, Halifax, Montreal, Ottawa, Toronto and Vancouver. Indices for the six metropolitan areas are combined to form a Canadian Composite Index.
The Teranet – National Bank House Price IndexTM is based on the “repeat sales methodology,” which is widely accepted as the most reliable and robust approach for tracking the housing market. In fact, this same methodology is used for the house price benchmark index in the United States. To be included in the calculation, properties must have been sold at least twice. The two prices are used to measure the increase or decrease in property value in the period between the two transactions.
The Teranet – National Bank House Price IndexTM will be published monthly on the last Wednesday of each month at www.housepriceindex.ca. Indices are published two months after transactions are registered. For example, indices published in November cover the transactions registered in September. The actual and historical values of the index, as well as a description of the methodology, are also available on this site.
Teranet offers e-services to the legal, real estate, government, financial and healthcare markets. Teranet provides exclusive access to Ontario’s Electronic Land Registration System ("ELRS"), enabling customers to conduct electronic registrations as well as title and writ searches relating to real property. Teranet has also leveraged its core competencies to create electronic service offerings in complementary areas. Teranet’s comprehensive products and services include property information, transaction management, collateral risk management, geospatial information, workflow software and enterprise solutions. For more information about Teranet, visit www.teranet.ca.
About National Bank of Canada
National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has close to $122 billion in assets and, together with its subsidiaries, employs 16,683 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank’s website at www.nbc.ca.
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National Bank Financial Group