Home prices can't keep increasing, despite low interest rate environment

TORONTO - Canadian home prices spiked unexpectedly by as much as 7.8 per cent in the most recent quarter, but such dramatic increases aren't likely to last, according to a housing report released Wednesday.

The Royal LePage House Price Survey warned that the average price for a Canadian house in the third quarter was driven higher by the effect of expensive cities like Vancouver and Toronto, overshadowing the fact that price increases slowed and values even fell in some areas.

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