National home sales in Canada increased in September 2011 by 2.7% compared to August according to the Canadian Real Estate Association (CREA).

The increase also resulted in an 11% rise in sales transactions when compared to September 2010. This was also the case for the previous three months, indicating that in the same period of 2010 there was lower activity.

Gary Morse, CREA President, said: “The Canadian housing market remains a bright spot against a backdrop of mixed headline news about the global economy. Low mortgage rates continue to draw buyers to the housing market, while recently tightened mortgage regulations are working as intended. That said, housing market trends often diverge from national trends due to local factors, so buyers and sellers should talk to a local realtor to understand housing market trends at play where they live.”

A total of 361,749 homes have been sold by the Canadian MLS® Systems to date in 2011, giving a rise of 1.2% over the same period in 2010, which is in line with the ten-year average.

The actual (not seasonally adjusted) national average price for homes sold in September 2011 stood at just under CAN$352,600, remaining below record level heights reached earlier in 2011. Despite an increase of 6.5% from September 2010, the year-over-year increase is the smallest since January 2011.

Gregory Klump, CREA’s Chief Economist, said: “Interest rates are expected to remain low for longer, and evidence suggests that recent changes to mortgage regulations are preventing the kind of excesses they were designed to avert. Both of these developments are good news for the housing market.”