OTTAWA, Nov. 15, 2011 /CNW/ - 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.
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
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
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
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
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
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
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
Further information can be found at http://www.crea.ca/public/news_stats/media.htm.
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