Several pricey markets drag averages down in September
The Canadian Real Estate Association says the falling average sale price nationally is a reflection of a decline in sales in the highest-priced markets, noting that prices are still rising in a majority of markets. The Ottawa-based group, which represents more than 100 boards across the country, said the average sale price of an existing home, sold through the MLS system, fell 5.4 per cent in September to $289,916 from $306,347 a year earlier. But it said prices are actually up in 65 per cent of the boards it represents.

"The recent price declines in the Canadian housing market reflect lower activity in some of Canada's priciest housing markets that had posted large price increases. Price declines in the U.S. reflect a massive oversupply of housing due to soaring foreclosures and overbuilding," said Calvin Lindberg, the president of CREA.

Vancouver, the most expensive market in the country, has had year-over-year sales declines in the 40-per-cent range, and many real estate analysts suggest the results are skewing the national number. Some of the price trends by province included a 7.4-per-cent decline for British Columbia to an average of $412,149, and a five-per-cent fall in Alberta to $342,052.

On the other hand, the average sale price in Saskatchewan was up 23.2 per cent to $229,381, and Newfoundland and Labrador's going rate for housing rose 17.5 per cent to $178,062.

B.C.'s average price was no doubt influenced by a 33.6-per cent-decline in sales in September, compared to a year earlier, to 7,688. In Newfoundland, sales were up 26.2 per cent to 431.

CREA said the supply of new houses reaching the market is also shrinking. It said there were 230,107 new listings in the third quarter on a seasonally adjusted basis, down 3.1 per cent from the previous quarter, which was the highest on record.

Home Sales
September home sales price movements by percentage (from September 2007):

National average -- $289,916 (-5.4)
British Columbia -- $412,149 (-7.4)
Alberta -- $342,052 (-5)
Saskatchewan -- $229,381(23.2)
Manitoba -- $186,181 (11.7)
Ontario -- $294,990 (-1.3)
Quebec -- $207,213 (3.5)
New Brunswick -- $142,402 (8.5)
Nova Scotia -- $189,283 (7.2)
Prince Edward Island -- $129,635 (-0.1)
Newfoundland and Labrador -- $178,062 (17.5)
Yukon -- $281,520 (20.4)
Northwest Territories -- $286,783 (-12.4)

Vaughan-- $366,449 (-12%)
Richmond Hill--$367,669 (-11%)

Source: CREA