UPDATE 1-Canada resale home price index up sharply in April

*Prices gain for 12th straight month in April

*Up 0.8 percent from March, 12.9 percent from year earlier
(Adds details)

TORONTO, June 30 (BestGrowthStock) – Canadian home resale prices
rose in April for a 12th straight month, and the gain was the
strongest in four months, 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
0.8 percent in April from March.

For the first time in five months, all markets surveyed
gained from the month before. The biggest gain was in Halifax,
Nova Scotia, up 1.9 percent, followed by 1.1 percent rises in
both Ottawa and Montreal.

Vancouver and Calgary were both up 0.8 percent, and Toronto
rounded out the group with a 0.6 percent increase.

Overall prices were up 12.9 percent from a year earlier,
strongly influenced by Toronto and Vancouver, which were up 17
percent and 15.6 percent, respectively.

“This is undoubtedly a strong report for the housing market
and certainly reflects the speed with which Canadian households
have been recovering,” TD Securities economist Francis Fong
said in a commentary.

If interest rates continue to rise in Canada, however,
buying a home will become less affordable, slowing down
residential sales activity after a year of robust price
increases that had sparked worry of a housing bubble.

The Bank of Canada said recently it expected housing market
activity to slow markedly over the balance of the year. Figures
from the Canadian Real Estate Association have shown the home
resale market has cooled in recent months. [ID:nN16194833]

TD expects the housing market to post an outright
contraction in both sales and prices through the last half of
2010 and into 2011.

The Teranet-National Bank 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.

Stock Basics
(Reporting by Ka Yan Ng; editing by Peter Galloway)

UPDATE 1-Canada resale home price index up sharply in April