Canadian home sales and prices up in February

TORONTO An initial meeting of the spring weather has helped Canadian home sales rise in February after two months of decline and defying predictions that the market begins to cool.

"The Canadian housing market remains strong, with an unusually mild winter we add a little 'extra juice to the mix," said BMO deputy chief economist Douglas Porter.

The Canadian Real Estate Association said Thursday that home sales rose 1.4 percent in February, bringing the third of months during the fall months in the month of January.

Compared to a year ago to increase sales of royal houses 8.6 per cent to 36 937 homes sold in Multiple Listing Service of CREA.

CREA said the market remains balanced as both home sales and the number of newly registered homes increased 1.9 percent, reaching its highest level since May 2010.

The increase in supply should help keep the market balance in the future and growth of home prices in check.

"A rebound in new listings in Toronto and Montreal, Canada two most active markets, offset a haven in new listings in Vancouver, Canada's third largest market," CREA said in a statement.

Vancouver is the fastest cooling in Canada, with February sales down 18 percent from levels a year ago heated.

This February has been a boom in sales of properties Mångmiljonhus operated by foreign buyers, mainly from Asia, picking up properties in specific areas, such as multicultural Richmond and West Vancouver luxury.

Which also served to skew the national average house price is higher - a recovery that was not planned for this year, said Gregory Klump, CREA's chief economist.

"Data for February confirm, but other factors are currently under national average prices up. More important is the housing market in Toronto, where an optimal balance between supply and demand continues to drive some of the strongest gains the prize in the country, in particular for the individual stand-alone buildings. "

A preference in recent months, single family homes, which are generally more expensive than condoms, have helped to buoy the national average house price.

The national average price of homes sold in February was $ 372,763, an increase of two percent on their treatment during the month of last year.

The average house prices in Vancouver are still double the national average, $ 806,094. But the Toronto market has now taken over as the country's engine for growth, with sales increasing by 12.2 percent and house prices up 10.6 percent from a year earlier in February to $ 454.470 .

A Toronto bungalow that has recently made headlines was sold for $ 421,800 below the asking price, with the winning bid is a student with funds from their parents in China.

While more buyers are prices of some of the hottest markets, a little 'if in doubt - how to market Vancouver last year, an influx of foreign investment are driving up the value of the home Toronto.

But Toronto real estate agent Elli Davis said that while many of its lists to receive more offers - a bit 'on the part of foreign investors - She does not think the offers are responsible for the running of the foreign prices.

"They (foreign investment) has been common for years," said 29 years of industry experience, he added that most of his buyers are from Toronto.

"No matter who it is, if someone wants to pay more than anyone else, this is what the market is."

Industry observers, who are careful of house prices, suggested Canadian real estate market, which has been driven by low mortgage rates because the recession will soon be cool - but many expect a "soft landing".

Others have called for a more drastic drop in sales and home prices, says that the market is overheated, creating a housing bubble could soon burst.

But Porter of BMO said the modest increase of two per cent of house prices hardly justifies the predictions of a devastating housing crash.

"It 's just possible that a high percentage of Canadian media and analysts in Toronto, the Canadian housing market perception deeply influenced by the strength of the local market?" Porter asked.

On a weighted basis, giving each region, regardless of size, same weight, the prices have increased even more - by 4.6 percent over the same period last year, a leap that "raise eyebrows in Ottawa" , says CIBC economist Avery Shenfeld.

"Policymakers are increasingly concerned about the risk of exceeding the price of housing (and related mortgage) that would like Canada to a harder landing on the road," he said.

"It increases the chances of a political solution at times this year on house price momentum will continue with measures at home and mortgage rather than an increase in interest rates can have a weapon in question."

Ottawa has acted with more stringent lending standards three times in the last three years to reduce the risk of overborrowing by the most vulnerable to higher interest rates.