OTTAWA, Nov. 15, 2013 /CNW/ - According to statistics released today by
The Canadian Real Estate Association (CREA), national home sales
declined in October 2013.
National home sales declined by 3.2% from September to October.
Actual (not seasonally adjusted) activity came in 8.3% above levels in
The number of newly listed homes declined by 0.8% from September to
The Canadian housing market remains in balanced territory.
The national average sale price rose 8.5% on a year-over-year basis in
The MLS® Home Price Index (HPI) rose 3.5% year-over-year in October.
The number of home sales processed through the MLS® Systems of Canadian
real estate Boards and Associations and other co-operative listing
systems fell 3.2 per cent on a month-over-month basis in October 2013.
The decline returned activity back to near where it stood last June and
"October's lower activity provides early evidence confirming that sales
in the later summer and early fall were boosted by homebuyers with
pre-approved mortgages at lower than current interest rates jumping
into the market before their preapprovals expired," said Gregory Klump,
CREA's Chief Economist. "Now that interest rates appear to be going
nowhere fast, sales activity in the near term may be held in check by
homebuyers who are in less of a hurry to purchase. While the Finance
Minister will no doubt continue to keep a close eye on Canadian housing
markets for signs of overheating as interest rates remain low, October
sales results may provide him with reassurance that tightened mortgage
regulations and lending guidelines are working as intended."
Sales were down in a little over half of all local markets, including
Greater Vancouver, the Fraser Valley, Greater Toronto,
Hamilton-Burlington, and Montreal. The monthly decline in activity
among these markets offset increased activity in a handful of less
active major urban centres.
October's seasonally adjusted sales figure stood slightly above (0.9 per
cent) the average for monthly sales over the past 10 years.
Actual (not seasonally adjusted) activity posted an 8.3 per cent
year-over-year gain in October. Sales were up on a year-over-year basis
in just over half of all local markets, once again led by gains in
Greater Vancouver, Calgary, Edmonton, and Greater Toronto.
On an actual (not seasonally adjusted) basis, a total of 402,299 homes
have traded hands across the country so far this year. That stands just
0.2 per cent below levels recorded in the first 10 months of 2012.
Despite considerable monthly sales volatility in recent years, annual
sales remain remarkably stable. With just two lower volume months left
to go this year, sales for the year-to-date in October stand broadly in
line with activity over the same period in each of the past five years
and well off the peak reached in 2007.
The number of newly listed homes declined by 0.8 per cent on a
month-over-month basis in October, with a fairly even split between the
number of markets where new supply fell and the number where it
remained stable or increased.
With the monthly decline in sales having outstripped the dip in new
listings, the national sales-to-new listings ratio fell to 54.6 per
cent in October compared to 55.9 per cent in September. This remains
well within balanced market territory, which has been the case since
Based on a sales-to-new listings ratio of between 40 to 60 per cent,
about two thirds of all local markets were in balanced market territory
"A majority of local markets across the country are still seeing a
healthy balance between buyers and sellers coupled with modest price
growth," said CREA President Laura Leyser. "Even so, there are some
markets in the Prairies and in parts of southwestern Ontario where
competition among buyers has increased, while parts of Quebec and some
areas in the Maritimes have been seeing increasing competition among
sellers. Because all real estate is local, your REALTOR® remains your
best resource for understanding how the housing market is shaping up
where you live or might like to."
The number of months of inventory is another important measure of
balance between housing supply and demand. It represents the number of
months it would take to completely liquidate current inventories at the
current rate of sales activity.
There were 6.0 months of inventory at the national level at the end of
October, up from 5.9 months one month earlier, which was the first
increase since February. However, as with the sales-to-new listings
ratio, the current level for months of inventory indicates that the
Canadian housing market remains well balanced.
The actual (not seasonally adjusted) national average price for homes
sold in October 2013 was $391,820, an increase of 8.5 per cent from the
same month last year. The size of year-over-year average price gains
continues to reflect the decline in sales activity last year in some of
Canada's larger and more expensive markets which caused the national
average price to drop at that time.
If Greater Toronto, Greater Vancouver, and Calgary are removed from
national average price calculations, the year-over-year increase
shrinks to 4.9 per cent. The MLS® Home Price Index (MLS® HPI) provides
a better gauge of price trends, since it is not affected by changes in
the mix of sales activity the way that average price is.
The Aggregate Composite MLS® HPI rose 3.52 per cent compared to October
2012. Year-over-year price growth picked up among all property types
tracked by the index, led by one-storey single family homes (+4.19 per
cent). This was followed by two-storey single family homes (+3.88 per
cent), townhouse/row units (+3.28 per cent) and apartment units (+2.05
Year-over-year price growth in the MLS® HPI was mixed across housing
markets tracked by the index, led by Calgary (+8.17 per cent) and
Greater Toronto (+4.54 per cent). Although the prices remained below
year-ago levels in Greater Vancouver, Victoria, Vancouver Island, and
Regina, October marked the smallest year-over-year decline in 2013.
PLEASE NOTE: The information contained in this news release combines
both major market and national sales information from MLS® Systems 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 neighbourhoods or account for
price differential between geographic areas. Statistical information
contained in this report includes all housing types.
MLS® Systems are co-operative marketing systems used only by Canada's
real estate Boards to ensure maximum exposure of properties listed for
The Canadian Real Estate Association (CREA) is one of Canada's largest
single-industry trade associations, representing more than 106,000
REALTORS® working through more than 90 real estate Boards and
Further information can be found at http://crea.ca/statistics.
SOURCE: Canadian Real Estate Association
For further information:
Pierre Leduc, Media Relations
The Canadian Real Estate Association
Tel.: 613-237-7111 or 613-884-1460