Prices keep climbing, but resale homes market cools off

TORONTO -- Canada's residential resale market cooled slightly in May, and while house prices continued to climb they did so at a more moderate pace, the Canadian Real Estate Association said yesterday.

Existing home sales in major markets fell 0.5 per cent to 26,902 units in May from April, according to CREA, which represents more than 94,000 realtors.

The average house price rose 1.1 per cent to $337,071 from the year before. CREA said that while this is a record high for the average price, it marks the smallest year-over-year increase in more than seven years.

"Unlike the situation in the United States, resale housing prices in Canada continue to increase,'' said CREA president, Calvin Lindberg.

"The evolving market means the increase in average price is below the double-digit percentages reported in 2006 and 2007.''

Newly listed properties also hit a record in May, up 2.2 per cent from April at 54,029 units.