House prices up 7.6% as sales slow year-over-year

By Special to MoneySense on May 15, 2014
Estimated reading time: 1 minute

National average price for a home sold in April was $409,708.

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OTTAWA – Canadian home sales were up 2.7 per cent from March to April, boosted by the Vancouver and Toronto markets, according to the Canadian Real Estate Association. However, sales through the Multiple Listings Service were down 0.3 per cent compared with a year ago and one per cent below the 10-year average. The association says the April sales were up compared with March in half of all local housing markets, dominated by a rebound in Vancouver and Toronto. “Greater Vancouver and Greater Toronto fuelled the anticipated spring pick up in national home sales in April which masked softer activity in a number of smaller markets,” CREA president Beth Crosbie said. The national average price for a home sold in April was $409,708, up 7.6 per cent from a year ago. Prices were up in six of the 10 provinces. The aggregate composite MLS Home Price Index was up 5.02 per cent. The national sales-to-new listings ratio was 51.9 per cent in April compared with 52 per cent in March, suggesting the market was in balanced territory. Concerns have been raised about the health of the Canadian housing market in recent months amid worries it could be overheated and headed for a fall. Recent signs have suggested a soft landing may be in the works, however some still worry about a bubble bursting. Earlier this week, Investors Group created stir in the spring mortgage market when it offered a 36-month closed, variable-rate mortgage at 1.99 per cent.