* Prices down on month, year-over-year gains slowing
* Some regions cooling faster than others
* Vancouver prices edge higher on month
By Andrea Hopkins
TORONTO, Nov 21 Canadian home prices dipped in
October from September and year-over-year price gains slowed for
the 11th straight month in yet another sign Canada's hot housing
market has cooled, 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 fell 0.2 percent in
October from a month earlier, only the third October drop in 13
years of data.
"Today's report provides additional evidence that
macroprudential regulations are helping to slow housing demand
and is consistent with last week's existing-home sales report,"
Mazen Issa, Canada Macro Strategist at TD Securities said in a
With further moderation in the housing market expected into
the end of the year and into 2013, Issa said the pressure for
hawkish monetary policy continues to ease.
"With tighter mortgage regulations proving to be effective
thus far, the Bank of Canada will have slightly more breathing
room to stay on the sidelines and observe how key global events
unfold in the very near-term," he wrote.
The long run-up in Canadian house prices and low supply in
some markets had sparked concern a housing bubble was forming.
The federal government has 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.
Those tighter lending rules have been offset by historically
low interest rates, which are expected to stay low into 2013.
The report showed prices were down on the month in seven of
11 urban markets surveyed. Prices fell 0.9 percent in Quebec
City, 0.6 percent in Victoria and Toronto, 0.4 percent in
Ottawa, 0.3 percent in Montreal, 0.2 percent in Calgary and 0.1
percent in Halifax.
Prices were up 0.1 percent in Vancouver, 0.3 percent in
Edmonton and 0.4 percent in Hamilton. Prices were flat in
October from September in Winnipeg.
The report is the latest in a string of data suggesting
that an extended Canadian upswing in house sales and prices is
coming to an end.
With cooling evident in several major cities, speculation has
turned to whether the slowdown will be a soft landing or a
The index was up 3.4 percent from a year earlier, the 11th
consecutive month of deceleration in 12-month inflation, but
twelve-month price changes varied widely, illustrating that some
markets are cooling faster than others, and some are still hot.
Year-over-year price changes included an 8.9 percent
increase in Halifax, a 7.2 percent gain in Hamilton, a 6.4
percent rise in Toronto, a 5.9 percent rise in Winnipeg, a 3.6
percent rise in Montreal, a 3.5 percent gain in Calgary, a 2.6
percent increase in Quebec City and Edmonton, and a 2.5 percent
gain in Ottawa.
Prices were down from a year earlier in Vancouver and
Victoria, by 1.0 percent and 1.7 percent, respectively.