Home prices continue to drop

The prices of homes in Canada have declined for the fifth straight month this January according to the Teranet-National Bank House Price Index.

The Index covers 11 Canadian cities and noted a 0.3 per cent decline reports the CBC.

Four of the 11 cities however, saw an increase in prices from December.

Victoria, Halifax, Quebec City and Ottawa’s prices rose from 2012 but it is still the lowest annual growth rate since late 2009.

The cooling down of the housing market shows a growth in the country’s economy said Bank of Canada governor Mark Carney

Carney believes the trend shows Canadian markets are moving away from borrowing towards relying on exports.

Analysts anticipate further drops in home prices and sales for the future.

Flickr Photo by: Nick Bastian Tempe, AZ

STORY WRITTEN BY: CHLOE DENEUMOUSTIER