Canadian Average House Price Reaches Record High

The Canadian residential average sale price in May 2009 reached the highest monthly level on record. At $319,757 (£170,446), it was up fourth tenths of a percentage point from the previous record set in May 2008. Over the past four months, the average price has recovered 16.4 per cent from the low in January. The average price for home sales climbed to new heights nationally, and in Saskatchewan, Ontario, Quebec, New Brunswick, and Nova Scotia. The strong rebound in sales activity in Canada’s most expensive markets is driving up average prices nationally just as a sharp decline in activity in these markets pushed average prices lower in late 2008.

The Canadian resale housing market activity also returned to pre-recession levels in May 2009. The rebound in activity is being led by an increase in transactions in some of the most expensive markets in the country, which is skewing the national average price upward.

According to statistics released by The Canadian Real Estate Association (CREA), actual home sales totalled 49,521 units in May 2009. This is less than one per cent below activity in the same month one year ago. Year-over-year declines have been shrinking since the beginning of the year.

Seasonally adjusted sales were up on a monthly basis in about 70 per cent of local markets. Monthly activity gains in Toronto (nine percent), Calgary (25 percent), Montreal (10 percent), Vancouver (eight percent), and Edmonton (12 percent) contributed most to the overall increase in monthly activity.

“Sales activity is now closer to the pre-recession peak than it is to the recent low point reached last January,” says Regina Broker Dale Ripplinger, President of The Canadian Real Estate Association. “Strengthening consumer confidence, low interest rates, and improved affordability are drawing buyers to the housing market across Canada,” he added.

“Fuelled by a string of monthly increases in activity, the number of transactions in May reached the highest point since July 2008,” said CREA Chief Economist Gregory Klump. “Inventory levels are still high in many markets, but fewer new listings and rising sales activity suggests that the selection of homes available for sale may shrink as the year progresses. The supply of homes up for sale needs to be drawn down further before average price increases become more widespread among local markets.”

House Prices In Canada
May 2009

Province	House Price $ (£)	12 Month % change
Nova Scotia	207,135 (£110,413)	2.3
Prince Edward Island	149,475 (£79,678)	18
New Brunswick	166,672 (£88,844)	9.1
Newfoundland & Labrador	200,649 (£106,956)	17.3
Quebec	227,393 (£121,212)	3.6
Ontario	322,059 (£171,673)	1.9
Manitoba	204,276 (£108,889)	0.3
Saskatchewan	242,829 (£129,440)	4.1
Alberta	339,296 (£180,861)	-5.8
British Columbia	465,139 (£247,942)	-2.6
Northwest Territories	337,577 (£179,945)	1.7

exchange rate £1 = $1.876