UPDATE 1-Canada home prices rose 1.0 pct in June from May - Teranet

Fri Jul 12, 2013 11:23am EDT
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* Prices up from May in all 11 markets surveyed

* Year-over-year appreciation slowing

* Economist sees limits to upside

By Andrea Hopkins

TORONTO, July 12 (Reuters) - Canadian home prices rose in June from May as a seasonal uptick in sales pushed prices to an all-time high, but the annual price increase was the smallest in more than three years, the Teranet-National Bank Composite House Price Index showed on Friday.

The index, which measures price changes for repeat sales of single-family homes, showed overall prices rose 1.0 percent in June from a month earlier and were up in every major Canadian city.

But the index was up just 1.8 percent from a year earlier, marking the smallest 12-month gain since November 2009.

The data adds to evidence that the Canadian housing market is recovering after slowing dramatically in mid-2012 when the government tightened mortgage lending rules in a bid to prevent a housing bubble.

"The June Teranet HPI report points to a nascent recovery in the housing market which is entirely consistent with our previous analysis that tighter mortgage regulations only have a temporary impact on housing," Mazen Issa, Canada Macro Strategist at TD Securities, said in a research note.   Continued...