The average home price in May was $416,584, up 1.7% from April and up 7.1% from the same month last year. However, Vancouver and Toronto continue to have a large effect on the national average. Excluding these two large and high-priced markets, the average price drops to $336,373, and the year-over-year gain is a more reasonable 5.3%.
According to CREA, 40,796 homes sold in Canada in May. This was an increase of 5.9% from the previous month, one of the largest monthly gains seen in recent years. Home sales were up 7.9% from the same month of the previous year, as the Canadian housing market continues to grow. The gains seen in home sales were widespread through Canadian markets and are likely indicative of a recovery from this year's frigid winter months, which delayed both demand from home buyers and available inventory coming on the market.
There were 3.8% more new listings on the market in May than in April; however, the sharp increase in home sales led the sale-to-new-listings ratio to increase to 53.1%. This leaves the country still firmly entrenched in a balanced market, but moves the ratio slightly in the direction favoring sellers.
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