Home sales activity increased for the third time in as many months in April 2009, according to statistics released by The Canadian Real Estate Association (CREA). The Canadian average house price also rose in April, to $306,366, within short reach of the record levels reached one year ago.

Seasonally adjusted national home sales activity climbed 11.2 percent in April 2009 compared to the previous month. This is the largest month-to-month increase in activity in more than five years. Home sales activity reached its highest level in seven months, with 34,838 units trading hands nationally in April on a seasonally adjusted basis.

The increase in April builds on gains of 10.3 percent in February and 7.7 percent in March. Seasonally adjusted activity now stands 32 percent above the lowest level in a decade that was recorded in January 2009.

Actual (not seasonally adjusted) home sales totalled 43,473 units in April 2009, down 11.8 percent from the same month one year ago. Year-over-year declines have been shrinking since dropping a record 42.2 percent in November 2008.

“Realtors know that several factors have led to this market situation,” says Regina Broker Dale Ripplinger, President of The Canadian Real Estate Association. “First, price adjustments in some markets have helped affordability. Second, lenders do have money for people and properties that qualify, although some are being more stringent. The third factor involves consumer confidence, which has risen in the housing market through the Spring.”

The last factor, CREA’s President adds, is that sellers have realised that realistic pricing is key, and that is very much driven by local factors. “Homes are only worth what a buyer is willing to pay.”

House Prices In Canada
April 2009

1 Jun 2009