For the past couple of months I have been cautioning our readers against making any big conclusions about Toronto’s real estate market based solely on changes in average prices. Toronto has seen a big decline in the number of sales of high end homes this year which has been exaggerating the decline in prices. For more on this read my previous posts Toronto Land Transfer Tax Exaggerates Housing Price Decline and Making Sense of Toronto’s Real Estate Decline in October.
At a national level, economists from TD Economics noticed that national average prices were being skewed down because of steep declines in sales in British Columbia, where average home prices are the highest in Canada. Last month TD Economics published a report titled A Different Look at Canadian Home Prices where they introduced the TD Home Price Index as a more accurate way to measure changes in national prices.
