OTTAWA, Oct. 15, 2013 /CNW/ - According to statistics released today by
The Canadian Real Estate Association (CREA), national home sales posted
a small month-over-month increase in September 2013.
National home sales edged up by 0.8% from August to September.
Actual (not seasonally adjusted) activity came in 18.2% above levels in
The number of newly listed homes declined by 1.4% from August to
The Canadian housing market has tightened but continues to remain
The national average sale price rose 8.8% on a year-over-year basis in
The MLS® Home Price Index (HPI) rose 3.1% year-over-year in September.
The number of home sales processed through the MLS® Systems of Canadian
real estate Boards and Associations and other co-operative listing
systems edged up a modest eight-tenths of one percent on a
month-over-month basis in September 2013.
Sales improved on a month-over-month basis in just over half of all
local markets, with gains in Greater Vancouver and Greater Toronto
offsetting declines in Calgary and Montreal.
Actual (not seasonally adjusted) activity remained roughly on par with
the 10-year average in September. The 18.2 per cent increase compared
to year-ago levels reflects weakened activity at that time.
Sales were up on a year-over-year basis in about 75 per cent of local
markets, led by gains in Greater Vancouver, Calgary, Edmonton, and
"Year-over-year increases in the sales over the past couple of months
highlights how activity softened across much of the country following
the introduction of tighter mortgage rules last summer," said Gregory
Klump, CREA's Chief Economist.
"While the momentum for sales activity began improving a few months ago,
it may be losing steam after having only just climbed back in line with
an average of the past 10 years," Klump added. "Even so, one can see
large year-on-year changes when comparing activity to a month like
September 2012, when sales dropped to the lowest level for that month
in more than a decade."
Some 340,980 homes have traded hands across the country so far this
year. That stands 1.8 per cent below levels recorded in the first three
quarters of 2012.
The number of newly listed homes declined by 1.4 per cent on a
month-over-month basis in September. Slightly more than half of all
local markets recorded declines, led by Greater Vancouver, Fraser
Valley, Calgary, Greater Toronto, London & St. Thomas, Ottawa, and
The small monthly increase in sales activity combined with a decline in
new listings pushed the national sales-to-new listings ratio to 56.1
per cent in September compared to 54.8 per cent in August. While the
national housing market has firmed in recent months, it remains in
balanced market territory where it has been since early 2010. Based on
a sales-to-new listings ratio of between 40 to 60 per cent, about three
of every five local markets were in balanced market territory in
"Sales activity across much of the country has improved in recent months
following a slow start to the year and new listings in some areas have
not kept pace," said CREA President Laura Leyser. "Depending on where
they are, there may be a bit more competition among buyers for limited
inventory in the months ahead. Because all real estate is local, your
REALTOR® remains your best resource for understanding how the housing
market is shaping up either 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 5.8 months of inventory at
the national level at the end of September, down from 5.9 months one
month earlier. As with the sales-to-new listings ratio, the current
months of inventory measure marks a slightly firmer but still well
balanced national market.
The actual (not seasonally adjusted) national average price for homes
sold in September 2013 was $385,906, an increase of 8.8 per cent from
the same month last year. Year-over-year average price gains in recent
months reflect the decline in sales activity recorded last year in some
of Canada's larger and more expensive markets which caused the national
average price to drop.
If Greater Toronto, Greater Vancouver, and Calgary are removed from the
national average price calculation, the year-over-year increase is 4.3
per cent. A better gauge of what's going on with prices is the MLS®
Home Price Index (MLS® HPI), which is not affected by changes in the
mix of sales the way that 'average' price is.
This month, Victoria and Vancouver Island join the MLS® HPI.
The Aggregate Composite MLS® HPI rose 3.13 per cent compared to
September 2012, slightly larger than the 2.80 per cent gain in August.
Year-over-year price growth picked up among all property types tracked
by the index with the exception of two-storey single family homes. That
said, this property type continues to see the strongest growth, with
the Benchmark two-storey single family home price up 3.56 per cent
year-over-year in September.
This was followed by one-storey single family homes (+3.44 per cent),
townhouse/row units (+3 per cent) and apartment units (+1.79 per cent).
Year-over-year price growth in the MLS® HPI was mixed across the markets
tracked by the index.
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
Email - firstname.lastname@example.org