Province
TORONTO — A record number of homes were sold in major Canadian cities during the first quarter, the Canadian Real Estate Association said yesterday.
On a seasonally adjusted basis, the number of homes that were listed and sold on the Multiple Listing Service totalled 86,861 during the first three months of the year.
That’s one-tenth of a percentage point above the previous record, set in the third quarter of 2005, the association said.
Prices are expected to continue to rise sharply in Vancouver, Calgary, Edmonton, Saskatoon, Winnipeg and Hamilton — the country’s tightest markets, measured by sales as a percentage of new listings.
“The strength of the housing market this year continues to surprise, despite rising home prices and slightly higher interest rates,” said Gregory Klump, chief economist at the real-estate association.
He credited numerous factors for the market’s buoyancy. “Homebuyers’ ability to extend the amortization of mortgages insured against default and the continued ability to negotiate a discount off advertised mortgage rates are helping keep monthly payments down despite rising home prices,” he said. “Rising incomes are also helping to keep housing affordability reasonable.”
Calgary, Edmonton and Toronto led the way for home sales in the first quarter. But new listings of homes for sale in Calgary fell to their lowest level in three years, as demand continues to outpace supply.
The number of new listings broke records in Victoria, Toronto, Ottawa, St. Catharines and Saint John, and, across the country, new listings in March of 46,265 represented the highest level since May 1991.
Prices were also on the rise, with the average listing price for major markets in March setting a record at $289,639. That’s an 11.5 per cent increase from March 2005.
© The Vancouver Province 2006