Record number of homes for sale

There were a record number of homes for sale last month, resulting in the smallest year-to-year gain in prices in more than six years, the real-estate industry reported yesterday.

The number of newly listed properties in major Canadian cities rose by 1.8 per cent to a seasonally adjusted 52,775, and were 17.7 per cent higher than a year earlier, the Canadian Real Estate Association said.

Meanwhile, the average price for a home was $334,293, up 3.2 per cent from a year earlier, it noted.

"The rise in new listings outpaced a small gain in sales activity, resulting in a more balanced market," it said, adding that the increase was largely due to a surge in new listings in Toronto and Saskatoon, which more than offset a decline in homes for sales in Edmonton and Calgary from what had been record levels in March.

Seasonally adjusted sales in Canada's major markets edged up 0.8 per cent to 27,039 units in April, with the small monthly gain due to increases sales in Quebec City, Toronto, Winnipeg, Halifax-Dartmouth, Hamilton-Burlington, Ont., St. Catharines, Ont., and in Newfoundland & Labrador, which offset fewer sales in Vancouver, London, Ont., and St. Thomas, Ont., Calgary and Victoria.

"This means buyers face less competition in their search for a home," said Calvin Lindberg, president of association. "It also means more competition among home sellers, so presentation factors such as prudent pricing are necessary for faster sale."

"An increase in listings is resulting in a more balanced resale housing market in Vancouver, Calgary, Toronto and Montreal, the four most active of Canada's major markets," said association chief economist Gregory Klump.

"New listings are forecast to rise further as sales activity continues retreating from the peak last year, resulting in an increasingly balanced resale housing market and smaller home price increases."

(Source: Vancouver Province)