UPDATE 1-Canadian house prices fall 0.2 pct in Oct. from Sept.

Wed Nov 21, 2012 9:53am EST
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* Prices down on month, year-over-year gains slowing

* Some regions cooling faster than others

* Vancouver prices edge higher on month

By Andrea Hopkins

TORONTO, Nov 21 (Reuters) - Canadian home prices dipped in October from September and year-over-year price gains slowed for the 11th straight month in yet another sign Canada's hot housing market has cooled, the Teranet-National Bank Composite House Price Index showed on Wednesday.

The index, which measures price changes for repeat sales of single-family homes, showed overall prices fell 0.2 percent in October from a month earlier, only the third October drop in 13 years of data.

"Today's report provides additional evidence that macroprudential regulations are helping to slow housing demand and is consistent with last week's existing-home sales report," Mazen Issa, Canada Macro Strategist at TD Securities said in a research note.

With further moderation in the housing market expected into the end of the year and into 2013, Issa said the pressure for hawkish monetary policy continues to ease.

"With tighter mortgage regulations proving to be effective thus far, the Bank of Canada will have slightly more breathing room to stay on the sidelines and observe how key global events unfold in the very near-term," he wrote.   Continued...