Home sales fell 3.1 per cent in April compared to a year ago but at least one analyst says it's a positive sign that the market is slowing gradually rather than heading for a crash. Douglas Porter, chief economist at BMO Capital Markets, said one month's results are less representative than the 10.1 per cent year-to-year drop experienced January through April. "But, the surprises on the sales data in recent months have consistently been on the high side of expectations, not the low side," Porter wrote in a note. The Canadian Real Estate Association said Wednesday there were 47,997 homes sold in April, down from 49,553 a year earlier. On a seasonally adjusted basis April sales were up 0.6 per cent from March.

Gregory Klump, the real estate association's chief economist, said the Easter holiday and an additional weekend in March likely hurt that month's sales, making April look better by comparison. "Since changes to mortgage rules made in 2012 took effect, national sales have been running nine to 10 per cent below levels posted in the first half of 2012, but they've been remarkably steady," Klump said in a statement. Meanwhile, prices continued to rise, but at a slower pace. CREA's home price index rose 2.2 per cent in April from the same month last year, the smallest 12-month gain in more than two years. Porter said that despite the slowing growth in house prices, the fact remains that prices are still rising.

"Despite the very loud gnashing of teeth and excessive wringing of hands for well over a year on the topic, Canadian home prices remain incredibly calm, cool, and collected," he said. The national average price in April was $380,588, up 1.3 per cent from a year earlier in April 2012. In Toronto the number of homes sold fell 5.2 per cent compared with April last year, while in Vancouver sales fell six per cent from a year earlier. Home sales in Regina fell by 24.2 per cent from a year ago, while sales in Saint John, N.B., fell 21.1 per cent. Calgary saw a 10.4 increase in house sales compared to April 2012, and home sales in Windsor-Essex in southwestern Ontario climbed 20.6 per cent year-over-year.