National home prices back up correction concerns

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National prices took a rare dip downwards in November, marking a first for 2011, according to the Teranet-National Bank House Price Index.

Read More The decline of 0.2% from October follows two months of flat price movement from the month before, and is the first decline since a brief correction in November 2010.

Of the 11 metropolitan markets surveyed, Calgary and Victoria declined most, down 1.6% and 0.9% respectively.

Only Halifax, Montreal and Edmonton showed gains over October, up 0.5%, 0.4% and 0.1% respectively.

The slight overall decline in November did little to dent the overall gains of 2011, however. Nationally, prices remained 7.1% higher in the 11 metropolitan areas, led by 10.8% gains in Toronto and 9.1% gains in Vancouver.

The report noted such big year-over-year percentage gains could start to quickly shrink as the index enters 2012 statistics, as the average prices are expected to continue to flatten or even decline in some locations.

“Since prices began rising again in December 2010, the recent acceleration trend in 12-month changes could come to an end with next month’s report on December 2011 prices,” noted Marc Pinsonneault, a senior economist with National Bank.

Victoria was the only city to have prices decline year-over-year in November, down 0.3%. Calgary similarly showed fairly flat results.

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