OTTAWA August 25, 2010 — A fourteen-month stretch of rising home prices could soon be broken, despite gains in June that were the largest since last August, analysts said Wednesday.
Resale home prices rose 1.5 per cent in June, according to the Teranet-National Bank house price index, released Wednesday.
On an annual basis, prices were up 13.6 per cent, driven higher by gains in Vancouver, up 16.3 per cent, and Toronto, up 16.2 per cent.
The monthly advance comes after resale home prices rose 1.3 per cent in May, 0.8 per cent in April and 0.3 per cent in March.
But the report stated that series of gains may be about to stall.
"We do not believe that acceleration in the Teranet-National Bank index will be sustained," said Marc Pinsonneault, economist with National Bank Financial.
"The number of existing homes sold has declined in each of the four months ending last July, and it did so to a proportionally larger extent than the number of new listings,"he said.