(Source: The Canadian Press)

Softening home prices drew Canadians back into the housing market in a big way in the first quarter, according to a Royal Bank (TSX:RY) report.

RBC Economics says home affordability recorded some of the biggest quarterly improvements on record in the first quarter. Senior economist Robert Hogue says with market turmoil decreasing and credit flows increasing, resale activity has “rallied impressively.”

He says what is most impressive is how widespread this rebound has been, “with all major cities in Canada experiencing a revival.”

Declining costs of home ownership during the last year were driven by significant cuts in mortgage rates.

Read the full press release here (July 8, 2009).

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