* Survey shows prices up 0.2 pct on month, 4.1 pct on year
* Smallest August gain in 12 years
* Prices fall in 3 of 11 cities surveyed
By Andrea Hopkins
TORONTO, Sept 19 Canadian home resale prices
edged higher in August from July but a slower pace of gains and
falling prices in three of 11 markets surveyed suggested the
market is cooling, the Teranet-National Bank Composite House
Price Index showed on Wednesday.
The index, which measures price changes for repeat sales of
single-family homes, showed overall prices climbed 0.2 percent
in August from a month earlier, the smallest August gain in 12
The index, which does not provide actual prices, was up 4.1
percent from a year earlier, the ninth consecutive month of
deceleration in 12-month gains.
The report is the latest in a string of data suggesting that
Canada's long upswing in house sales and prices is coming to an
end. With cooling evident in Vancouver and several other major
cities, speculation has turned to whether the slowdown will be a
soft landing or a crash.
"The latest print for the Teranet HPI reinforces the trend
observed in other housing measures with a correction well
underway in some key markets," Mazen Issa, Canada macro
strategist at TD Securities, said in a note to clients.
"While the national measure has been held up by the buoyancy
in prices in Toronto, this market is steadily decelerating on a
The 0.2 percent monthly gain in August was the sixth such
increase in a row and was led by a 2.0 percent rise in Hamilton.
Prices rose 0.8 percent rise in Ottawa and 0.7 percent in
Toronto and Edmonton. Halifax prices were up 0.5 percent, while
Winnipeg and Calgary both notched 0.4 percent gains, and
Montreal climbed just 0.1 percent.
Prices fell in three cities. Vancouver led the losses with a
1.2 percent decline, Victoria prices fell 0.7 percent, and
prices in Quebec City fell 0.6 percent.
Compared with a year earlier, prices were up 8.3 percent in
Toronto, 7.1 percent in Hamilton, and 6.5 percent in Winnipeg.
They were 1.1 percent lower in Victoria and 0.3 percent lower in
A long run-up in Canadian house prices and low supply in
some markets had sparked concern that a housing bubble was
forming. The federal government tightened mortgage lending rules
four times in four years to try to prevent borrowers from taking
on too much debt to buy into the market.
"As the impact of the fourth iteration of tighter mortgage
regulations becomes further entrenched, the housing market will
continue to moderate and hence, reducing the urgency for the
Bank of Canada to tighten policy," Issa said in the research