According to statistics released
today by The Canadian Real Estate Association (CREA), national
resale housing activity picked up a little further in October
2011 following the uptick in September.
Highlights:
•Sales activity rose in October, marking the highest level since
January.
•Actual (not seasonally adjusted) national sales activity in
October stayed in line with the 10-year average for the month,
as it has most months this year.
•Year-to-date sales are also even with the 10-year average.
•The number of newly listed homes remained little changed from
levels in the previous three months.
•While the combination of stronger sales and stable new listings
resulted in a slightly tighter balance of supply and demand, the
national housing market remains firmly rooted in balanced
territory.
•The national average price posted a 5.5 per cent year-over-year
gain in October, the smallest increase since January.
Homes sold through MLS® Systems of real estate Boards and
Associations in Canada rose 1.2 per cent in October 2011 from
the previous month. While national sales activity levels are
still best described as average, the monthly rise in October
sales built on the 2.5 per cent gain in September, and lifted
activity to the highest level since January.
Just over half of all local markets posted monthly sales
increases, led by gains in Montreal, Toronto, and Vancouver.
“There was no shortage of headline news in October about global
financial market volatility and economic uncertainty, but it
doesn’t appear to have dampened homebuyers’ spirits,” said Gary
Morse, CREA’s President. “Interest rates are at low levels and
are likely to stay that way for some time to come. Homebuyers
clearly see the opportunities that the current interest rate
environment presents. That said, all real estate is local, so
buyers and sellers should consult their local REALTOR® for an
understanding of opportunities in their housing market.”
As has been the case in most months this year, actual (not
seasonally adjusted) national home sales in October stayed in
line with the 10-year average for the month. Although up 8.5 per
cent from levels one year ago, the gain in large part reflects
last year’s nascent pick-up in activity following a mid-year
lull.
A total of 397,561 homes have traded hands via Canadian MLS®
Systems so far this year. This represents an increase of 1.8 per
cent from levels in the first 10 months of 2010, but is directly
in line with the 10-year average for the year-to-date figure.
The number of newly listed homes remained little changed in
October compared with levels recorded in each of the previous
three months.
“The prevailing economic outlook for Canada is one of slower but
still positive economic growth, with heightened caution about
investment and hiring decisions,” said Gregory Klump, CREA’s
Chief Economist. “Consumer confidence and the housing sector are
being supported by low interest rates and high employment
levels, but their prospects depend on how Canada’s economic
outlook evolves in response to global economic risks and
outcomes in the months ahead.
Home sales activity over the past couple of months suggests
buyers are confident that the Canadian economy will remain
relatively unscathed by global economic risks, since every home
purchase is a homebuyer’s vote of confidence in the future. That
confidence is no doubt rooted in the success of coordinated
fiscal and monetary policy responses that helped quickly pull
Canada out of the last recession, and a stated willingness and
ability to carry out further policy actions if need be.”
While the combination of stable new listings and stronger sales
made for a slightly tighter balance between supply and demand in
October, the national housing market remains firmly rooted in
balanced territory. The national sales-to-new listings ratio, a
measure of market balance, stood at 53.4 per cent in October, up
from 52.8 per cent in September.
Based on a sales-to-new listings ratio from 40 to 60 percent,
about 60 per cent of local markets in Canada were in balanced
market territory in October. Of the remaining markets, there was
a handful more seller’s markets than buyers’ markets.
The number of months of inventory stood at six months at the end
of October on a national basis, little changed from the end of
September (6.1 months). It has remained stable at about six
months since April. The number of months of inventory represents
the number of months it would take to sell current inventories
at the current rate of sales activity, and is another measure of
the balance between housing supply and demand.
The actual (not seasonally adjusted) national average price for
homes sold in October 2011 stood at $362,899. This is up 5.5 per
cent from October 2010, making it the smallest increase since
January.
PLEASE NOTE: The information contained in this news release
combines both major market and national MLS® sales
information from the previous month.
CREA cautions that average price information can be useful in
establishing trends over time, but does not indicate actual
prices in centres comprised of widely divergent neighborhoods or
account for price differential between geographic areas.
Statistical information contained in this report includes all
housing types.
MLS® is a co-operative marketing system used only by Canada’s
real estate Boards to ensure maximum exposure of properties
listed for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s
largest single-industry trade associations, representing more
than 100,000 REALTORS® working through more than 100 real estate
Boards and Associations.
Further information can be found at
http://www.crea.ca/public/news_stats/media.htm.
To contact the reporter on this story:
Ilan Kolet in Ottawa ikolet@bloomberg.net
To contact the editor responsible for this story:
Marco Babic at mbabic@bloomberg.net
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