Recent indicators point to a thawing of the Canadian housing market. The government induced deep freeze is beginning to lift as evidenced by month over month activity increase and a year over year average price increase.
National sales activity rose in March by 2.40% compared to the previous month. Although activity declined by 15.3% from the same month last year, the 2.40% reveals a positive trend that’s expected to continue into the Spring of 2013.
The national average home price now sits at $378,500 representing a 2.5% increase over the same month last year. Although prices are growing nationally, be careful to consider your regional market. Toronto and Vancouver are experiencing weaker price gains due to the large build ups experienced in 2010 and 2011. Calgary and Edmonton on the other hand are pulling up the average as they make up ground for a slower 2010 and 2011.
No further changes to the mortgage rules are expected to come out of the Department of Finance this year. As a result growth in the national housing market is expected to closely follow economic growth at a rate of 2% to 3%.