Average Canadian house price over $400K

The average price of a resale Canadian home eclipsed the $400,000 level, according to figures released for March.

The Canadian Real Estate Association says the average price of a Canadian home increased by six per cent last month,to $401,419.

• MAP: House prices across Canada

That's a strong figure by historical standards, but slightly behind the growth seen in recent months.

The growth in volume terms was about the same, as there were4.9 per cent more homes changing handslast month than there were in the same month a year earlier.

But the number of new listings rose only half a percentage point and the supply of homes for sale remains low, two factors which tend to support price gains as there's not enough supply to keep up with demand.

Sales rose in more than half of all local housing markets in March, led by gains in a number of large urban markets in British Columbia, Albertaand Ontario. But sales in B.C.'s Lower Mainland posted a small monthly decline from February's level, CREA said.

Sales in many housing markets continue to recover from winters deep freeze, said CREApresident Beth Crosbie. At the same time, activity softened in some of Canadas West Coast housing markets."

Toronto-Dominion Bank agreed with that assessment, with economist Diana Petramala noting "On a regional basis, the increase in home sales was largely driven by Western cities, led by Victoria (up 15 per cent), Calgary (up7.3 per cent), Edmonton (up8.8 per cent) and Saskatoon (up seven per cent). Most of the markets with the biggest gains were in parts of the country to have been most adversely affected by bad weather conditions through the end of 2013 and early 2014."

Home sales areseasonal, gaining steam through spring and into summer, so under normal circumstances, one would expect a large jump in home sales between February and March.