OTTAWA, June 15, 2011 /CNW/ - According to statistics released today by
The Canadian Real Estate Association (CREA), national resale housing
activity remained stable in May compared to April.
Sales activity held steady from April to May, but posted the first
year-over-year gain in over a year due to falling demand in May 2010.
Year-to-date sales are in line with the ten-year average.
New listings also remained stable from April to May.
National housing market remains firmly entrenched in balanced territory.
National average price is still being skewed upward by historically high
sales activity in certain Vancouver neighbourhoods.
Seasonally adjusted national home sales activity edged down by less than
one per cent in May 2011 compared to the previous month. Among major
markets were activity declines in Vancouver and Ottawa, offsetting
gains in Edmonton and Toronto, where sales reached the second highest
level on record for the month of May.
Actual (not seasonally adjusted) activity came in 2.7 per cent above
levels reported last May. This was the first year-over-year increase in
more than a year, reflecting falling sales activity in May 2010.
Activity fell sharply last year between April and July, with May
marking the mid-point of that slide. Although activity has been more
stable this year, last year's sales volatility is expected to continue
to affect year-over-year comparisons in the months ahead.
A total of 196,749 homes have traded hands via Canadian MLS® Systems so far this year. This is in line with the ten-year average for
year-to-date activity in May.
"The Canadian housing market has seen some big ups and downs in recent
years, making national sales activity so far this year look like
something of a Goldilocks story by comparison - not too hot, not too
cold," said Gary Morse, CREA's President. "Since local housing market
trends often differ from national trends, buyers and sellers should
consult their local REALTOR® to understand how the housing market is shaping up where they live."
Seasonally adjusted new residential listings were little changed from
April to May, edging up one tenth of a percentage point. The number of
newly listed homes fell in Vancouver, Fraser Valley and the Okanagan
region in May, offsetting small gains in Toronto and Montreal.
With sales and new listings holding steady on a national basis in May,
the resale housing market remained firmly planted in balanced
territory. The national sales-to-new listings ratio, a measure of
market balance, stood at 52.1 per cent in May, little changed from 52.5
per cent in April.
Based on a sales-to-new listings ratio of between 40 and 60 per cent,
housing markets were balanced in 62 of 101 real estate boards in
Canada. Less than half of the rest can be characterized as sellers'
markets, based on a ratio above 60 per cent. "For the most part,
sellers' markets became slightly more balanced than the previous
month," said Gregory Klump, CREA's Chief Economist. "Toronto stood out
as an exception, with sales activity there growing faster than new
The seasonally adjusted number of months of inventory stood at 6.1
months at the end of May on a national basis. This is little changed
compared to the six months of inventory at the end of April 2011. 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 and
The national average price for homes sold in May 2011 was $376,817, up
8.6 per cent from the same month last year. A number of compositional
factors skewed the national average price upward in May. These factors
include historically high sales activity in selected pricey Vancouver
neighbourhoods and broadly based price gains in Toronto, where supply
remains tight relative to demand. If Vancouver sales are excluded from
the calculation, the year-over-year change in the national average
price amounts to 5.6 per cent; excluding Toronto and Vancouver shrinks
the increase to 3.7 per cent.
"Changes in the national average home price reflect variations in home
sales activity across and within local markets," said Klump. "Failure
to recognize changes in the mix of sales activity can lead to
misinterpretation of average price fluctuations. It can also give rise
to faulty predictions of broadly based home price deflation by way of
PLEASE NOTE: The information contained in this news release combines
both major market and national MLS® sales information 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® 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 Associations.
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
P: 613-237-7111 or 613-884-1460