With prices down almost 2 per cent in the first quarter, it might seem like the Canadian housing market has cooled. But, don’t be fooled!

The latest Scotiabank Global Real Estate Trends report reveals that the Canadian market is outperforming other developed nations.

Price trends appear to be relatively steady in most local Canadian markets and the Toronto market is particularly strong. But, according to an article in The Financial Times, the report indicates that “home prices fell by 1.6% in the first quarter of 2012 compared to the same period of 2011.”

Sound like bad news? Well, compared to global markets, Canada is doing quite well!

Most countries examined in the report saw prices decline during the first quarter and the report reveals that global property markets are under stress. This is particularly true in European countries such as Ireland and Spain where prices fell 18.9 per cent and 9.1 per cent year-over-year. Yikes!

According to the report, “The intensifying euro zone debt crisis, increasing financial market strains and moderating global growth suggest there is more downside risk to property prices in the near term. Eventually, however, improved housing affordability and pent-up demand will put many of these markets on a firmer footing.”

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