Slowdown in Canadian housing market
New evidence has emerged that the growth in the Canadian residential market is slowing
The Canadian Real Estate Association’s MLS Home Price Index was 5.1 per cent higher in February 2012 than in the same month a year earlier.
But this was the smallest year-on-year increase for eight months, and the fourth consecutive month of slowing gains.
Furthermore, the February 2012 index reading was only up 1.1 per cent from the previous month.
CREA chief economist Gregory Klump said: ‘The index typically rises in February from the previous month as demand ramps up 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.’
However, Stuart Rough, chairman of London-headquartered practice Broadway Malyan, told AJ: ‘Because Canada hasn’t been subject to the cheap lending that has fuelled the housing and credit boom in other countries – and the government has maintained greater control over its banks, resulting in a relatively stable economy – the longer-term prospects for the property market appear sound.’
Last month the AJ reported that Broadway Malyan is targeting further design work on the 55 hectare East Village it masterplanned in Calgary (AJ 09.03.2012).