Sales activity in the Canadian housing market broke all records in May according to the Canadian Real Estate Association.

The average Canadian house price broke through the $300,000 barrier for the first time ever.

At $303,836, the average Canadian house price was up by 12.9 percent on the same time last year – the biggest increase since May 2004 and the highest level on record.

The average house price broke all previous monthly records in a number of major markets including Vancouver, Calgary, Edmonton, Regina, Saskatoon, London, Hamilton, Montreal, and Saint John.

Sales activity for the year-to-date in May was up 5.0 percent compared to the first five months of last year.

Record numbers of houses sold in Calgary, Edmonton, Saskatoon, Winnipeg, Toronto, London, Kitchener, Sudbury, Ottawa, Montreal, Quebec City, and Saint John. “May marks the fourth consecutive month in which the major market average residential price broke all previous records,” said CREA Chief Economist Gregory Klump.

“Sales activity continues to run high, despite rising interest rates and home prices. This shows how additional full time job growth, rising incomes and resilient consumer confidence are working together to keep housing demand strong.”

“Consumers are continuing to show their confidence in resale housing right across Canada, with new home sales records set in several major centres this May,” added CREA President Alan Tennant.

14 Jun 2006