Canadian home sale transactions increased by 2.5% in March 2012 on the previous month, lifting national activity to its highest monthly level since April 2010, according to The Canadian Real Estate Association (CREA).

Wayne Moen, CREA’s President, said: “The spring housing market is off to a good start. The number of sales and newly listed properties are up from levels last year, and the vast majority of (regional) housing markets remain balanced. That said, all housing is local, so buyers and sellers should talk to their local realtor to understand current and prospective trends where they live.”

Actual (not seasonally adjusted) activity was 1.6% above March 2011 levels, the smallest year-over-year increase since April 2011, reflecting moderate gains in a number of major centres, including Toronto, Calgary, Montreal, Ottawa, and Quebec City. Increases in these housing markets offset larger declines in Vancouver and the Fraser Valley.

A total of 108,373 homes traded hands in the first three months of the year, resulting in a 4.4% increase on activity in the first quarter of 2011, a 5% rise on the five-year average for first quarter sales and a 3.8% rise above the 10-year average.

The actual (not seasonally adjusted) national average price for homes sold in March 2012 was $369,677, representing a decline of 0.5% from the same month last year.

Gregory Klump, CREA’s Chief Economist, said: “Average prices are up from year-ago levels in most large urban centres. The slight decline in the national average price points to a tug of war between Toronto and Vancouver from the standpoint of their sales mix compared to last year.”

“The national average price was skewed higher last spring by record level high-end home sales in some of Vancouver’s priciest neighbourhoods. It was expected that this would not recur this spring, which the latest sales figures confirm. The decline in average price reflects the change in Vancouver’s sales mix, not housing price deflation.”

“At the same time, overall home sales activity in Toronto is stronger than it was last spring, and higher-end home sales are up from year-ago levels. Being by far the most active housing market in Canada, Toronto represents the single biggest factor supporting national average price compared to last year.”