More signs today that the residential real estate market is starting to pick up.

The Canadian Real Estate Association, in releasing its monthly MLS numbers, said housing activity in Canada was up in February from seasonally-adjusted levels the previous month.

In Calgary, combined residential sales numbered 1,392 units in February compared with 928 units in January. The average sale price last month was $370,198, up slightly from $362,143 in January. New listings for February were 3,662 units compared with 3,767 units in January.

However, when compared with year-ago levels the number of sales in February fell by 35.6 per cent in Calgary while the average sale price was down by 10.8 per cent and new listings were off by 29.3 per cent.

CREA, which represents realtors, said 28,669 homes traded hands across the country on a seasonally-adjusted basis — 8.6 per cent above seasonally-adjusted levels in January, and the first monthly increase in activity since September 2008. Seasonally-adjusted activity in February also surpassed levels reported in November and December of 2008.

Monthly seasonal increases in activity were largest in British Columbia (14.4 per cent), Nova Scotia (12.7 per cent), and Alberta (11.9 per cent).

Actual (not seasonally-adjusted) transactions numbered 25,373 units in February. This was 31 per cent below MLS sales levels a year earlier, but it is the smallest year-over-year decline since October 2008.

CREA also said the supply of homes for sale remains high but has been trending lower. National MLS residential new listings numbered 65,060 units in February 2009, down 10.9 per cent from the same month one year ago. On a seasonally-adjusted basis, new listings are down 11.4 per cent from their peak reached in May 2008.

“The housing supply is expected to continue easing, but it will take time before it realigns with lower demand,” said CREA chief economist Gregory Klump. “Economic uncertainty is keeping home buyers in a cautious mood, so homes are taking longer to sell than in recent years. Lower sales activity at the higher end of the price spectrum will keep the national MLS residential average price under downward pressure.”

The national average price for home sales was $281,972 in February, 9.2 per cent below February 2008. CREA said this is smaller than year-over-year declines observed in the past four months. It is also the first time that the year-over-year decline in the national average price has decelerated since first turning negative inJuly 2008.

The national average price continues to be pushed downward by lower activity in some of Canada’s more expensive housing markets and by fewer transactions in higher price ranges.

“Consumer confidence will continue to be depressed by a barrage of negative economic news in the months ahead,” said Klump. “Heightened job insecurity will keep many potential homebuyers on the sidelines. Those who are confident about their job situation will benefit from improving affordability in a number of housing markets.”

The Canadian housing market sprung to life in February, said Millan L. B. Mulraine, economics strategist with TD Securities.

“The report does offer some hope that the decline in Canadian home prices may have stabilized somewhat in February after appearing to have accelerated in the latter months of 2008. And the increase in sales is certainly a welcome development, though possibly influenced by the weather,” he said.