The listing of 99,901 homes in April suggests balance is returning to what had been a sellers’ market, the Canadian Real Estate Association reports. The months of housing inventory available rose to 5.3 months on a seasonally adjusted basis, the highest level since May 2009. Meanwhile, Canadian home sales fell 2.6 percent in April from the previous month and 6.8 percent below the peak in December 2009.
“Canada’s housing market has gone from full gallop to stately canter and is poised to slow to a leisurely trot in the months ahead,” said Bank of Montreal deputy chief economist Douglas Porter. He added that higher rates, tighter mortgage rules and the HST will rein in activity.
Housing prices in April rose 12.2 percent compared to April 2009. However, that is the mildest gain in eight months. Home sales were up 20.3 per cent in April. That trend also seems to be slowing, Porter says, especially when compared to last year’s sales gain of more than 70 percent.
The Canadian housing market is cooling the report says. Due to the rebound of the labor market, the decline will be moderate, economists say.