According to the report, Canadian home sales “softened” in May 2012 and were down 3.1 per cent from April. However, year-over-year sales were up 9 per cent from May 2011. This reflects last year’s slowdown in sales due to changes in mortgage rules.
The report also notes that the number of newly listed homes went up slightly from April to May, with an increase of 0.3 per cent. The national average home price, on the other hand, went down 0.3 per cent year-over-year.
The actual (not seasonally adjusted) national average price for homes sold in May was $375,605.
Lead by Toronto, activity receded in 60 per cent of all local markets. However, Gregory Klump, CREA’s Chief Economist notes that “activity in Greater Toronto is stronger this spring than it was last year, and higher-priced homes are still selling quickly. As Canada’s most active housing market, and one of the priciest, it is still the biggest factor boosting the national average price but its support was less of a factor in May.”
According to Wayne Moen, CREA President, “returning to an average level of sales activity still leaves Canada’s housing market in great shape. The expected continuation of low interest rates will keep housing markets stable and homeownership affordable and within reach for many buyers in the months ahead.”