Canadian housing market begins to thaw out in March

• National sales activity rose in March by 2.4%, month-over-month. When compared to March 2012, sales were down by 15.3%.
• Prices increased by 2.5% versus a year ago. The average home price in Canada now rings in at roughly $378,500 on a non-seasonally adjusted basis.
• The aggregate MLS® home price index also tracks change in prices, but the index is less distorted by the composition of sales.  By this measure, prices were up 2.2%, year-over-year – the slowest pace of acceleration in two years. 
• The sales-to-listings ratio came in at 49.9% in March, roughly the same as February’s reading. The ratio is just one measure used to infer overall housing conditions and with this month’s reading, the Canadian housing market is in balanced territory. It would take 6.5 months to deplete the number of unsold homes.  This count has not materially changed since mid-2010.
• Toronto and Vancouver are exerting a downward influence on the national price statistic. These two markets saw the largest price gains in 2010 and 2011, and their markets are now unwinding and returning to more fundamentals. By contrast, Calgary and Edmonton did not see these same price gains and as a result, have fewer excesses to evaporate.