Canada house prices 'losing steam'

Photo: VIP Properties

The index, which measures price changes for repeat sales of single-family homes, showed overall prices were flat last month from August. House prices normally average a gain of 0.2 percent in September, according to Teranet.

Still, the index was up 2.7 percent on an annual basis due to a decline in prices in September 2012.

"Year-over-year increases in the sales over the past couple of months highlights how activity softened across much of the country following the introduction of tighter mortgage rules last summer,'' said Gregory Klump, CREA's chief economist.

"While the momentum for sales activity began improving a few months ago, it may be losing steam after having only just climbed back in line with an average of the past 10 years,'' he added.