UPDATE 1-Canada resale home price index rises for 2nd month

* Prices up 0.4 pct month/month; 3.9 pct year/year

* Vancouver up 0.9 pct

* Four of six markets higher in January
(Adds details)

TORONTO, March 30 (Reuters) – Canadian resale home prices
rose for a second straight month in January, led by gains in
the Vancouver area, according to a report on Wednesday.

The Teranet-National Bank Composite House Price Index,
which measures price changes for repeat sales of single-family
homes in six metropolitan areas, showed overall prices were up
0.4 percent in January from December.

“The key that is worth emphasizing here is that the
repeat-sales Teranet gauge posted its second consecutive
monthly rise in January after a three-month downdraft prior to
that,” wrote Scotia Capital economists Derek Holt and Gorica
Djeric in a research note.

The Teranet data lags other Canadian resale data. The
Canadian Real Estate Association’s (CREA) latest figures, for
February, showed the national average resale price jumped 8.8
percent year-over-year, largely due to a show of strength in
the Vancouver market. [ID:nN14120429]

The Teranet index showed Vancouver had a price gain of 0.9
percent in January. Prices in the Halifax, Montreal, and
Toronto markets also rose.

Calgary slid 1 percent, its fifth decline in six months,
while prices were down 0.6 percent in Ottawa, the fifth
straight monthly contraction.

“Market conditions are currently balanced in Canada,” said
Marc Pinsonneault, a senior economist at National Bank
Financial.

He noted conditions look “somewhat tight” in Vancouver and
Toronto, but “favorable” to buyers in Calgary.

Looking ahead, analysts said an expected rise in interest
rates and recently announced tighter mortgage rules could limit
price growth.

Prices were up 3.9 percent from a year earlier.

The index tracks home prices over time for repeat sales, so
properties with at least two sales are required in the
calculations. The report did not provide actual prices.
(Reporting by Ka Yan Ng; editing by Peter Galloway)

UPDATE 1-Canada resale home price index rises for 2nd month