Market is cooling from recent record-setting levels
Garry Marr
Sun
First it was Canada‘s top 25 markets that were feeling that pain from a slowdown in housing. Now it’s clear the malaise has hit the entire country.
Two weeks ago, statistics from the Canadian Real Estate Association showed the average sale price of a house in the country’s 25 largest markets was down 0.4 per cent last month from a year ago.
New statistics released Monday show housing across the country is now losing out to inflation. The average sale price of a home in Canada last month was $314,028, a tiny $35 increase from a year ago. For the first six months of the year, prices were up 3.6 per cent from a year ago.
“In essence, Canada‘s housing market has pulled back from the record-setting pace set in 2007, but in most provinces it continues at or near sales levels set in the years before that,” says Calvin Lindberg, president of CREA. “The increase in housing prices is also pulling back from the record-setting pace of last year, but we have yet to see any of the price contractions that have impacted the housing market in the United States.”
CREA said there is plenty of good news in the numbers. For the fifth straight year, more than a quarter of a million units were sold in Canada. However, sales over the first six months of the year are down 13.1 per cent from a year ago.
“Resale housing activity is cooling evenly in rural, suburban and urban markets,” said Greg Klump, chief economist with CREA.
He said rising fuel prices have not impacted the housing market. “There is no statistical evidence to date that shows increases in energy prices are prompting Canadians to relocate. Lifestyle factors remain the prevalent influence on homebuyer preferences.”
© The Vancouver Sun 2008
