Canadian real estate market shows signs of cooling
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.