According to data released by the Teranet National Bank Home Price Index, selling prices across the country increased by only 0.7% in July, down slightly from the 1% increase that occurred in the two months prior.
From a yearly perspective, prices have increased by 4.8% from last year, but have been showing signs of deceleration overall for the past eight months.
The new data has also impacted the buying situation in many of Canada’s larger real estate markets. For example, in Toronto, the country’s largest overall market, prices have risen by an average of 9.2%, a statistic that may spark the interest of prospective investors. However, the prices have fallen in Victoria, BC, by a rate of 0.4% since July 2011.
The decrease in average prices should not be viewed as a major deterrent to investors, as buying prices are still relatively high.
However, some investors use this opportunity to consider selling some of their properties, as the Teranet National Bank forecasts a further deceleration in prices over in the coming months.
Lower prices can easily transform a buyer’s market into a seller’s market, so investors may want to exercise some caution if making major purchases in the future. Some investors may choose to put any future purchases on hold until the market prices begin to rise again.
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