Canadian property prices slide for first time in two years

Canadian property prices slid in September for the first time in almost two years, according to the latest figures.

Average house prices in Canada fell by 0.35 per cent in September, the Teranet-National Bank Composite House Price Index revealed, the largest price drop since November 2010, when values fell by 0.39 per cent. Since then, low interest rates have driven up spending on Canada's property, but while prices are 3.6 per cent above last year, values declined on a monthly basis in six out of the 11 major cities, including Vancouver and Montreal.

But while some worry about a property market slowdown, property transactions jumped by 2.5 per cent last month, according to the Canadian Real Estate Association.

"It doesn't mean a catastrophe, but it's consistent with a soft landing in the sector," National Bank Financial senior economist Marc Pinsonneault told the Wall Street Journal.