Report: Cdn. housing market cools

Inflation-adjusted, the national average home price fell by 1.65% in the first quarter of 2012, compared to the same period in 2011, reads the Scotiabank Global Real Estate Trends report.

By comparison, international real estate markets in European countries saw much more dramatic declines. Spain’s national average fell 9.1% year-over-year, while Ireland suffered a crippling 18.9% drop, compounding it’s lingering woes.

Most markets tracked by the Scotiabank report saw prices decline during the quarter, despite rock-bottom interest rates in most countries.

Economists are blaming the collective fall of a lack of consumer confidence and high unemployment, especially in Europe.

Those factors will continue to exert a cooling effect on most housing markets, although Canada may prove to be one of the few exceptions.

Still fingers will remain cross until CREA reveals May numbers on Friday.

In April, the average home price in Canada rose 0.9 per cent from a year ago to $375,810, while sales on a year-over-year basis were 49,480, up 11.5 per cent.

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