The Canadian property market is expected to slow over the next few months, which should cause prices to fall, according to a survey of leading economists.
Canada property prices have appreciated at a strong rate in recent years, but market analysts believe that prices will start to fall next year with some experts anticipating a decline of up to 25 per cent by 2013.
The projections followed the latest report released by the Canadian Real Estate Association which showed that the average price of a home in Canada increased to a record high of £242,300 in June, representing an rise of 8.7 per cent compared to corresponding month in 2010.
Economists believe that those markets which have recorded the greatest boom, such as Vancouver and Toronto, could see the greatest bust.
Robert Kavcic, an economist at BMO Capital Markets, told the The Star newspaper: "'Valuations have been high in both cities. Overall, it's hard to envision home prices going up much further".
Any significant fall in property prices, would undoubtedly attract more people thinking of buying a home in Canada.