The average price of existing homes across Canada took a big hit in August, falling by 5.1 percent according to data released from the Canadian Real Estate Association (CREA). The average price of a home sold through the Canadian Multiple Listing Service was CAD $316,052 in August, compared to a little over $332,000 a year ago. Additionally, the number of sales across the country dropped by 19.3 percent in August from a year earlier.
One of the biggest hit markets in terms of numbers of sales was Vancouver, which has been the leader in Canadian real estate in recent years. The west coast city has the country’s highest prices and sales volume dropped in August by 54 percent from 2007, while prices dropped 5 percent to $557,114. Other cities that saw drops in prices include Calgary, Edmonton, Victoria and Windsor-Essex, the home to country’s automobile industry which has been hit hard this year.
While nationwide the news was down, resale prices were up in 20 of Canada’s 25 largest markets. Toronto was the busiest city in terms of activity and prices were up a scant 0.8 percent in August. Unit sales increased in just three cities: Edmonton, Quebec City and Thunder Bay. Economists recognize the market is in a difficult place, but are still relatively positive when Canada is compared to the US.
“Canada’s housing market continues to face strong headwinds from declining confidence, low affordability and an upward trend in new listings,” Robert Kavcic, economic analyst at BMO Nesbitt Burns Inc., said in a research note. Overall, annual listings growth is outpacing previous year listings in 22 of 25 major markets.
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