Canada's housing market cools

[ErickMontreal]

Canada's housing market cools

Home prices are still rising but much more slowly.Tyler Anderson/National PostHome prices are still rising but much more slowly.

 

Resale price growth lowest in seven years

 

Garry Marr, Financial Post Published: Friday, June 13, 2008

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TORONTO -- The Canadian real estate market is being flooded with homes, causing prices to start falling in some key markets, according to the Canadian Real Estate Association.

 

The average price of a home sold last month in the country's top 25 markets was $337,071, an all-time record. But that record price was only up 1.1% from May, 2007 -- the smallest year-over-year increase in seven years.

 

"The record number of new listings means more opportunities for buyers," said Gregory Klump. chief economist with CREA.

 

"The resale housing market has evolved in just a few short months."

 

CREA said there were 67,628 new units on the market in May, a 7% jump from last year. It was the second straight month that a record number of houses has gone on sale.

 

The impact on prices is being felt most keenly in Alberta. The average price of a home sold in Calgary last month was $418,881, a 2.4% drop from a year ago. Edmonton sale prices averaged out at $340,499, down 4.8% from a year ago.

 

Unit sales in both Alberta cities are also plummeting. Calgary homes sales were off 34.2% from a year ago while Edmonton sales were down 34.8% during the same period.

 

The home sales are dropping across the country. CREA said on a national basis sales were off 16.9% in May from a year earlier.