The Canadian Real Estate Association reported home sales up 3.6% from April to May, the largest monthly gain in almost two and a half years. Although sales are still down from 2012 it appears a decline in sales and pricing will not be as significant as first predicted.
The national average price in major markets across Canada was $388,910 which was an increase of 3.7% from a year earlier for the month of May. Almost all of the local markets that make up the average saw year-to-year increases.
CREA is now estimating that 443,400 units will be sold in 2013 , a decline of 2.5% from 454,573 in 2012. It had previously projected a decline of 2.9% from 2012.
Although mortgage rules tightened in 2012 it appears low interest rates and positive job numbers in Canada are continuing to drive the real estate market. As interest rates begin to edge upwards we will all be keeping an eye on how the Canadian real estate market reacts in the coming months.
