While increases in the price of property in Canada may not be as significant as early in 2011, the countryÃ¢â¬â¢s property market remains one of the strongest in the world. ThatÃ¢â¬â¢s the result of a recent report by Scotia Economics which shows that despite a recent levelling off of prices, Canada was one of only three major property markets to see positive year on year price growth.
Prices of property in Canada rise 5 per cent in second quarter
The Global Real Estate trends report by Scotia Economics follows nine major developed markets and found that only Canada, France and Switzerland registered positive year on year increases in values in the second quarter of 2011.
The Wall Street Journal reports that Ã¢â¬Ëaverage inflation-adjusted existing home prices in Canada rose 5 per cent in the second quarter, a pace similar to that seen in the first quarterÃ¢â¬â¢. However, the newspaper also reports that Ã¢â¬Ëpreliminary data for July and August see a levelling off of pricesÃ¢â¬â¢.
The average price paid for a property in Canada so far in 2011 was $364,953 (ÃÂ£228,410) compared with $339,030 (ÃÂ£212,185) in 2010.
While Canada reported property price growth, Scotia Economics reported that average inflation-adjusted house prices in the USA fell by 6 per cent in the second quarter of 2011 and 5 per cent in the first quarter. The report also found that properties in Ireland, Spain and the UK continued to drop.
Another country which has previously been apparently impervious to property price falls, Australia, also saw a 6 per cent inflation-adjusted fall in year on year house prices in the second quarter.
Scotia Economics said: "Canada's housing market stands out in its resilience and longevity.Ã¢â¬Â The Wall Street Journal also states that Ã¢â¬Ëwhile record low interest rates will help offset the climb in home prices, the report noted the economic uncertainty may dampen buyers' enthusiasm and contribute to its forecast of slowing sales and stable prices for the remainder of the year.Ã¢â¬â¢