ORES INDEX: Toronto (GTA) Single Family Homes

Posted on June 16th, 2009 Comments Off

By Brian Madigan LL.B.

For several years I have been producing a real estate index. It started effective 1 January 2004 and tracked prices monthly in accordance with an index. Everything was set at baseline 100 on the first of January 2004.

The reason was largely to provide at least four consecutive years of numbers for the purposes of comparison.

The four year moving average is the standard for comparative purposes in the mutual fund industry, so that’s why I selected the starting date.

However, that was 65 months ago. It’s now time to revamp the index and make it a little shorter in terms of the time period. So, the new staring date is 1 January 2005. That will mean that as of the end of May 2009, we are looking at the last 53 months. There’s no magic in the starting date. It could be anytime.
Here is the monthly progression over the time period. This particular index shows the average price for single family homes as measured at the end of each month by the Toronto Real Estate Board.

May-09 122.4261
Apr-09 119.3414
Mar-09 112.0415
Feb-09 111.8103
Jan-09 106.3412…..2009
Dec-08 111.8444
Nov-08 114.0623
Oct-08 109.2322
Sep-08 114.0521
Aug-08 112.9185
Jul-08 114.9427
Jun-08 122.5057
May-08 123.2118
Apr-08 123.3786
Mar-08 117.7003
Feb-08 118.2295
Jan-08 115.8779…..2008
Dec-07 116.4309
Nov-07 121.8499
Oct-07 122.1281
Sep-07 117.6366
Aug-07 111.9914
Jul-07 113.2670
Jun-07 118.2032
May-07 118.4582
Apr-07 117.2940
Mar-07 113.0420
Feb-07 114.0948
Jan-07 109.4643…..2007
Dec-06 104.0465
Nov-06 110.0841
Oct-06 110.2995
Sep-06 108.0463
Aug-06 104.6577
Jul-06 105.8467
Jun-06 110.7984
May-06 113.1200
Apr-06 113.4746
Mar-06 109.2817
Feb-06 109.5274
Jan-06 102.9541…..2006
Dec-05 101.2611
Nov-05 105.5815
Oct-05 105.9754
Sep-05 104.6809
Aug-05 100.0353
Jul-05 100.8953
Jun-05 106.7847
May-05 107.2207
Apr-05 105.8461
Mar-05 102.2913
Feb-05 103.4446
Jan-05 100.0000…..2005

The indexed price now stands at 122.4261. That’s an increase of 22.4261 in four years and five months (53 months). The increase is 0.4231 monthly, or 5.0776 annually, as non-compounded, simple interest.

You may recall that I have frequently referred to the fact that property doubles in value every 20 years.

http://wannanetwork.com/ontariorealestate/2009/06/15/ores-index-toronto-gta-single-family-homes/

Reported by Moishe Alexander, CFC CEO

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