month of October across the country. It shows very interesting trends and
October a record breaking month for MLS(r) resale housing market
New records for the month were reported in about one-fifth of local markets
OTTAWA - November 16th, 2009 - According to The Canadian Real Estate
Association, sales activity reached the highest level ever for the month of
Residential sales activity via the Multiple Listing Service(r) (MLS(r)) of
Canadian real estate boards numbered 42,288 units. This is up 41.5 per cent
compared to October 2008, when news of the global financial crisis hammered
consumer confidence. New records for the month were reported in about
one-fifth of local markets, including Toronto, Montreal, and Ottawa.
Seasonally adjusted national MLS(r) home sales totaled 45,818 units in
October 2009. This is two per cent higher than the previous record set in
May 2007, and 74 per cent above the recent low in January, when activity
fell to the lowest level in a decade. New monthly records for activity were
set in British Columbia, Ontario, and Quebec, which reflect record level
activity in Greater Vancouver, Toronto, Ottawa, Montreal and Quebec City.
Since the beginning of 2009, some 401,124 homes have traded hands via the
MLS(r) System. This is 1.6 per cent above the same period last year, but
below levels for this period in each of the previous three years.
"Low interest rates and upbeat consumer confidence continue to release the
pent-up demand that built late last year and earlier this year," said CREA
President Dale Ripplinger. "The release of that pent-up demand has boosted
national sales activity to new heights and is drawing down inventories."
The national MLS(r) residential average price also reached new heights in
October 2009. At $341,079, the average sale price was up 20.7 per cent from
the same month last year. The increase reflects the high degree to which the
national average price was skewed downward last year by a significant
decline in activity in Canada's priciest markets, and then upward by the
rebound in activity.
The price trend is similar but less dramatic for the national MLS(r)
weighted average price, which compensates for changes in provincial sales
activity by taking into account provincial proportions of privately owned
housing stock. It set a record in October, rising 14 per cent on a
October also saw the MLS(r) residential average price in Canada's major
markets improve. At $373,095, the average sale price was up 22.1 per cent
from the same month last year. As with the national counterpart, the price
trend is similar but less dramatic for the major market MLS(r) weighted
average price which rose in October 12 per cent on a year-over-year basis.
Seasonally adjusted new listings coming onto the MLS(r) Systems of real
estate boards across Canada inched up on a month-over-month basis in October
to 65,148 units. New listings peaked in May 2008 and declined sharply until
March 2009. Since April 2009, new listings have held to within a range of
66,500 units, plus or minus 1800 units.
The sharp rise in resale housing demand has increasingly shrunk inventories.
There were 194,994 homes listed for sale on the MLS(r) Systems of real
estate boards in Canada at the end of October 2009. This is 20.8 per cent
below the peak reached one year ago, and the sixth month in a row in which
inventories are down from year-ago levels.
Nationally, there were 4.1 months of inventory in October 2009 on a
seasonally adjusted basis, the lowest level in more than two years. The
actual (not seasonally adjusted) number of months of inventory in October
2009 stood at 4.6 months, which is down slightly from the previous month
(4.9 months), and among the lowest of levels this year. The number of months
of inventory is the number of months it would take to sell current
inventories at the current rate of sales activity.
"New listings are still expected to rise in the coming months in response to
headline average price increases," said CREA Chief Economist Gregory Klump.
"New supply dropped dramatically in December last year and earlier this year
in response to a difficult pricing environment. Sellers who moved to the
sidelines should be drawn back to the market as prices rise further over the
rest of the year and in early 2010."
PLEASE NOTE: The information contained in this news release combines both
major market and
national MLS(r) sales information from the previous month. The Canadian Real
Estate Association has previously released these separately.
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(r) 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 96,000
REALTORS(r) working through more than 100 real estate Boards and
Associations. Further information can be found at www.crea.ca.
I hope this finds you Happy and Healthy!
All the Best!
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
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