TORONTO—The Canadian Real Estate Association (CREA) says the number of homes sold last month was up 4.9 percent compared with the same month last year, but remained below the 10-year average.
The industry association also says sales in March were up 1.0 percent compared with February, but below a recent peak set last August.
CREA says more than half the local markets it tracks saw more sales in March, led by Vancouver, Calgary, and Toronto, but the number of new listings rose only half a percentage point and the supply of homes for sale remains low.
CREA chief economist Gregory Klump says March was an improvement over the previous two months but “There was little evidence of a flood of pent-up demand being released.”
Klump also said that some markets, such as Toronto and Calgary, are seeing multiple offers per listing.
“This means national sales are being constrained by a lack of supply despite strong demand in some markets, since Greater Toronto and Calgary combined account for one quarter of national activity,” Klump said.
The national average price for homes sold in March through CREA members was $401,419, up 6 percent from the same month last year.
The association’s MLS home price index—which adjusts to compensate for the mix of properties sold—also rose 5.19 percent year-over-year, up slightly from 5.05 percent in February.
In Toronto, the country’s largest city, economists and public officials have kept a wary eye on the condo segment of the market. There have been fears, so far unrealized, that a years-long building boom and high prices may result in lower prices if new supply outstrips demand for condominium units.
However, the Toronto Real Estate Board—a member of CREA—announced separately Tuesday that 4,454 condominium apartments were sold through its system in the first quarter, up 9 percent from 4,085 a year earlier, while the average selling price also rose, gaining 5.6 percent to $351,213.
In a separate report, the Re/Max real estate franchising group says demand for Toronto condos is being supported by a lack of available rental apartments—the vacancy rate is about 2 percent—and the high price for detached homes.
Overall, Re/Max says it expects Toronto housing prices will continue to rise about 8 percent this year—in line with the pace set in March.
