The Teranet index for October, released today, showed a second straight monthly decline. The index uses a paired sales methodology to calculate changes in house prices.
After falling 1.1% month-over-month in September, the first decline in 16 months, the index continued to show weakness as it declined 0.4% in October. Though the year-over-year price change came in at 6%, this is the smallest year-over-year increase of the year as price momentum continues to disappear.
Of note, the Teranet index has not recorded consecutive monthly declines since the housing market tanked back in 2008 to early 2009. With demand still stagnant and inventory set to build, I don’t imagine this trend will reverse for quite some time.