House price growth slows in canada

The MLS Home Price Index, the leading measure of Canadian home prices, continued rising in February 2012, according to the latest statistics released from the Canadian Real Estate Association (CREA).

Year on comparisons continued shrinking, providing further evidence that Canadian home price growth may be topping out, said CREA.

The index in February 2012 was up 5.1% from its year ago level, the smallest increase since June 2011 and the fourth consecutive month in which gains slowed.

Toronto posted the largest increase at 7.3%, but momentum continued fading. Price increases also moderated further in Calgary at 2.5% and Montreal at 1.6%. Gains decelerated in all housing categories tracked except two storey single family homes.

The Aggregate Composite MLS Home Price Index rose 1.1% on a month on month basis in February 2012. Prices were up most for two storey single family homes at 1.6%, while townhouses and apartments saw smaller gains at 0.4% and 0.5% respectively.

‘Home price growth is generally slowing. At the same time, price gains and trends differ among housing markets tracked by the index,' said CREA president Gary Morse.

CREA chief economist Gregory Klump pointed out that the MLS Home Price Index typically rises in February from the previous month as demand increases leading into the spring housing market.

‘The monthly price increase in February this year was less than what we saw in either of the past two years, which is more evidence that the trend for Canadian home prices is slowing,' he added.

Source: Property Community