OTTAWA, Nov. 16 /CNW/ - According
to The Canadian Real Estate Association, sales activity reached the
highest level ever for the month of October.
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 totalled 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
"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
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 year-over-year basis.
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 12 per cent on a year-over-year basis in October.
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 1,800 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 in October of last year,
and the sixth month in a row in which inventories are down from
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
"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."