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Prices up, but growth slows in Canada
April 02, 2012
Canadian home prices rose in February 2012, according to statistics from the MLS® Home Price Index released by The Canadian Real Estate Association (CREA)
. Year-over-year comparisons continued shrinking, providing further evidence that Canadian home price growth may be topping out.
The MLS® Home Price Index in February 2012 was up 5.1% from levels in February 2011. The increase was the smallest since last June, and marked the fourth consecutive month in which gains slowed. The MLS® Home Price Index rose 1.1% in February 2012 as compared to January.
“The index typically rises in February from the previous month as demand ramps up leading into the spring housing market,” said Gregory Klump, CREA’s Chief Economist. “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.”
Among housing categories tracked by the index, single family homes posted the biggest month-over-month gains in most markets, particularly in Toronto where they are in short supply relative to strong demand.