Home sales fall in May

Home sales fall in May

More signs have appeared pointing to a continued softening of the Canadian housing market, with home sales dropping for the first time this year in May, according to Canada’s national real estate association.

National home resale activity fell 3.1 per cent in May compared to April said the Canadian Real Estate Association, while the number of newly listed homes edged up 0.3 per cent over the same period, signalling a more balanced housing market.

Prices too seem to be softening, with homebuyers paying $375,605 last month, down 0.3 per cent from what they paid last year.

For the third straight month, the number of newly listed homes was little changed in May, edging up just 0.3 per cent from April. The number of markets in which new listings either rose or held steady (49) ran almost even with those where new listings eased (52).

Still, some markets are having a greater effect on prices, however.

“Activity in Greater Toronto is stronger this spring than it was last year, and higher-priced homes are still selling quickly,” said Gregory Klump, CREA chief economist. “As Canada's most active housing market, and one of the priciest, it is still the biggest factor boosting the national average price but its support was less of a factor in May. At the same time, national average price is finding support from Calgary, where sales and average selling prices are up from levels in May last year. Overall, price growth remains modest amid balanced market conditions in much of the rest of Canada.”