Canada market continues steady progress

Canadian residential property are continuing a steady climb according to latest data from the Canadian Real Estate Association (CREA).

Sales last month were up just under 1% compared with March, while it stood 11.5% above last year’s levels … though CREA commented that this significant jump followed changes to mortgage rules which came in during March 2011.

The average price for April stood at $375,810, while average sales prices were up in 80% of local markets compared to the year previous.

Gregory Klump, chief economist at CREA, said: “Sales data confirm that high-end activity in Vancouver is well off the peak levels reached at this time last year, which is exerting a gravitational pull on the national average price. By contrast, activity in Toronto is stronger this spring than it was last spring. Higher priced sales activity there is on the rise and buoying average prices. As the most active housing market in Canada, Toronto is the biggest factor supporting national average price.”

“Netting Vancouver out of the national average price calculation yields a 4.9% year on year gain. Netting Toronto out of the national average price calculation, while leaving Vancouver in, produces a 2.2% year on year decline. Netting out both Vancouver and Toronto results in a 3.1% increase in average price. On balance, this points to modest price growth amid balanced market conditions in much of the rest of Canada,’ he added.

Wayne Moen, CREA president, said: “A number of Canadian housing market trends in April remained intact from the previous month. Trends in Vancouver and Toronto continue to diverge. These two housing markets have an obvious influence on national statistics and a high profile, but Canada is a big place. Trends in housing markets differ across Canada.”

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