Has the Canadian housing market turned a corner? According to new statistics from the The Canadian Real Estate Association (CREA), national sales improved in May 2013.
And though the modest bumps in both sales and prices might not sound like big leaps, they do represent the best numbers the country has seen in a long time.
The number of home sales processed through the MLS Systems and other cooperative listing systems in Canada rose 3.6 per cent on a month-over-month basis in May, the largest monthly gain in almost two and a half years.
The increase boosted sales activity almost to where it had been just before new mortgage rules came into force last summer, marking the first noteworthy increase in the past nine months. Home sales also improved in two-thirds of all local markets studied.
Actual sales for May 2013 came in 2.6 per cent lower than the same time in 2012.
“Until recently, mixed sales trends across the country taken together had resulted consistently in a stable national trend,” said Gregory Klump, CREA’s Chief Economist.
“The difference in May was that sales improved in so many markets at the same time.”
Values also saw an increase. The national average sale price rose 3.7 per cent on a year-over-year basis in May. The MLS Home Price Index (HPI), which measures home price trends and home price inflation/deflation in residential markets, is often considered the best gauge of Canadian home price trends as it is not affected by changes in the mix of sales the way that average price is. In May, it rose 2.3 per cent year-over-year.
The number of newly listed homes was up 1.9 per cent from April to May.
See the graphs below for more details…
Photo via Flickr: Toronto Town House by Ms Anthea.