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June 17, 2010

According to the Canada Real Estate Association’s most recent report, Canadian existing home sales fell 9.5% from near-record level activity the previous month. While activity declined in more than 70 per cent of local markets, the lower national figure resulted largely from fewer sales in Toronto, Vancouver and Ottawa.

The number of homes sold in May dropped to 37,576 units, from 41,502 units in April. CREA president Georges Pahud blamed changes to mortgage regulations and rising mortgage rates as responsible of the softening in transactions.

“May was the first full month in which sales activity was affected by these changes,” said Pahud. “An accompanying decline in new listings and housing starts means these changes are also affecting the supply side, which will keep the market balanced and Canadian home prices stable.”

Prices, however, still went up last month. The national average price of homes sold via Canadian MLS Systems rose 8.5 per cent in May from a year ago.

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