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Canadian home sales are recovering from a 7-year low, but prices are still flat

After collapsing to its lowest level since 2012, sales of Canadian homes have risen over the past two months and are now about four percent higher than a year ago.

The Canadian Real Estate Association said on Wednesday that home sales rose last year on an annual basis for the first time since December 2017.

This was the last month before the federal government tightened the mortgage rules by applying a "stress test" to borrowers, making it difficult to obtain funding to buy a home. The rules were introduced to remove speculators and overcrowded buyers, and the result has so far been to release very hot air on the market.

Sales have collapsed and prices finally stopped their multi-year start, setting new highs, month after month. By the way, the average selling price of a Canadian home has decreased each month since September last year, when the figure was $ 487,000.

CREA said on Wednesday that the average resale price of the Canadian resale house sold in April was $ 495,000, up 0.3 percent from what it was a year ago.

The group, which represents 130,000 real estate agents in the country, says the increase in sales in the Toronto and Montreal regions is enough to compensate for the fall in Vancouver.

"Sales are still lower as buyers adjust to a cocktail with home accessibility challenges, reduced access to finance due to the stress test of mortgage loans and changes in housing policy by the British Columbia government,

Despite the increase in sales at the national level, the number of homes sold is still below the level most in the second half of last year.

"Trends in the housing market are improving in some places, not so much in others," said CREA president Jason Steven.

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