Average home prices surge in canada

The national average price for homes rose 8.8 per cent year-over-year in February, but a group of Canada's realtors suggest they might not stay at those levels for much longer as stricter mortgage rules come into effect.

The Canadian Real Estate Association said the national average price for a home rose to $365,192 in February, but that includes a record number of multimillion-dollar home sales in the Vancouver area that skewed the average price numbers.

"When you take Vancouver out of the equation, the year-over-year increase in the national average price drops to 3.4 per cent," Gregory Klump, CREA's chief economist said in a statement. "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."

In its monthly report, the association said national resale housing activity in February ran close to the five-year average for the month. Seasonally adjusted home sales were down 1.6 per cent nationally over January, as sales eased off in about two-thirds of markets, offsetting increases in activity in Vancouver and Calgary.

About 41,283 homes were sold last month across the country on CREA's Multiple Listing Services, down 2.2 per cent from the 42,230 sold in January.

Source: CTV