The Canadian Real Estate Association says home sales were down last month but prices kept rising, although not as fast as earlier in Canada's home-price boom.

The average resale price hit $327,477 in February (up from $325,183 in January and $311,101 in February 2007) in a CREA survey of multiple listing services in 20 markets across the country.

Calgary's average February home price was $415,017, up 5.5 per cent.
(CBC)

The 5.3 per cent year-over-year increase was the smallest since November 2004, reflecting what the association called a "more balanced" market after a record-setting 2007.

The survey, issued Friday, came as a Royal Bank economist declared housing less affordable than at any time since 1990 in terms of the income needed to carry the cost of home ownership.

Prices have continued to rise in Canada while they imploded in many U.S. neighbourhoods after a junk-mortgage binge.

The CREA survey tracked 26,302 Canadian home sales in February, up from 19,742 in January but down from 29,090 in February 2007. After adjustment for seasonal swings, the February figure was 6.4 per cent lower than January's, CREA said.

In a commentary, BMO Nesbitt Burns economist Douglas Porter said there are finally signs of cooler price gains.

"Sagging affordability and the likelihood of increased consumer caution point to calmer housing market conditions through the rest of 2008," he said

According to CREA, the priciest homes were in Greater Vancouver, where the average February figure was $623,517, up 17.3 per cent in a year.

The runners-up were:

• Victoria ($487,696, up 12.8 per cent).
• Calgary ($415,017, up 5.5 per cent).
• Toronto ($382,048, up 3.6 per cent).
• Edmonton ($338,347, up 5.3 per cent).

The survey recorded just 6,015 transactions in Toronto, 11.2 per cent fewer than in February 2007.

"Snowfall in Toronto made it tough to show prospective buyers, and tough to process a listing,” CREA president Ann Bosley said in a statement. "It was one of the toughest months ever, weatherwise, for realtors in Toronto."

The cheapest housing was in Thunder Bay, Ont., where the average price was $123,028, up 6.8 per cent in a year.

Also under $200,000 were:

• Saint John ($146,681, down 2.7 percent).
• Newfoundland and Labrador ($151,244, up 7.7 per cent).
• Windsor-Essex, Ont. ($158,391, up two2 percent).
• Winnipeg ($183,665, up 11.5 per cent).

Looking at the rest of the year, CREA chief economist Gregory Klump said sales are expected to fall short of 2007’s record and new listings are expected to increase, leading to smaller price gains and a market more balanced between buyers and sellers.