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Average Canadian house price gains may recede under new mortgage rules: CREA

Home sales across Canada declined nearly six percent compared to last February to finish the month at about the five-year average, according to a report issued today by the Canadian Real Estate Association(CREA).


February was the fourth consecutive month during which sales were on par with the five-year average. CREA continues to characterize the national housing market as balanced but warned that average price gains could recede following mortgage rule changes that will take effect later this week.


From the CREA report:


The national average price for homes sold in February 2011 rose 8.8 per cent year-over-year to $365,192. “The average price has been skewed higher nationally and in British Columbia recently by a record number of multi-million dollar sales in a couple of areas in Greater Vancouver,” said Gregory Klump, CREA’s Chief Economist.


“When you take Vancouver out of the equation, the year-over-year increase in the national average price drops to 3.4 per cent,” added Klump. “While that’s still stronger than in the past six months or so, national average price gains may recede after tighter mortgage regulations take effect in March.”


Read CREA’s full release here.


National MLS statistics for the month of February is here. A report from the Globe and Mail is here.


A report from the Financial Post is here.


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Norm Fisher
Royal LePage Vidorra

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