Ottawa Citizen

Canadian real estate market shows signs of cooling

- BY GARRY MARR

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 price was only up 1.1 per cent from May 2007 — the smallest year-over-year in- crease in seven years.

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

“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 seven per cent 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-per-cent drop from a year ago. Edmonton sale prices averaged out at $340,499, down 4.8 per cent from a year ago.

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

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

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