Average house price in a big city tops $300K

By Benjamin Bach on June 14, 2006 in Uncategorized

CTV.ca is reporting that for the first time ever, the average price for a residential home in a major market is over $300,000:

The average national price of a big city home in Canada surpassed $300,000 for the first time ever in May with sales numbers hitting record levels.

"May marks the fourth consecutive month in which the major market average residential price broke all previous records," CREA Chief Economist Gregory Klump said.

As well, the average house price broke all previous monthly records in a number of major markets including Vancouver, Calgary, Edmonton, Regina, Saskatoon, London, Hamilton, Montreal, and Saint John.

Klump said that full-time job growth, rising incomes and resilient consumer confidence are contributing to keep the housing demand strong.

"Recent price increases are resulting in a growing shortage of lower priced resale home listings in a number of markets," which are pushing up the average price, he said.

The key phrase for market watchers is this:

New listings in May hit the highest level on record, leaving the market tighter.

Yes, the market and economy is hot. Many homes are selling each month, and owners are getting good money for them. The problem is that more and more homes are coming onto the market, without a corresponding rise in the number of home sales, and because of that we're seeing the KW Housing Index continue to go down.

At the beginning of June, the Housing Index for all single family residential homes stood at 0.54. Now, two weeks later, it is at 0.48. This means that when you list a home now, you must price it competitively, and prepare it to sell.