OTTAWA, Feb. 15 /CNW/ - National resale housing activity climbed further
in January 2011, according to statistics released today by The Canadian
Real Estate Association (CREA).
Seasonally adjusted national home sales activity rose 4.5 per cent in
January 2011 compared to the previous month, reaching the highest level
since April 2010. Led by Vancouver and Toronto, seasonally adjusted
sales activity posted monthly gains in more than half of all local
Canadian markets in January. National sales activity has improved
steadily since last summer, and now stands almost 25 per cent above the
low point reached in July 2010.
"We anticipated the recent announcement of tighter mortgage regulations,
which will come into effect this March, would pull forward sales
activity into the first quarter of 2011, particularly in some of
Canada's more expensive housing markets," said Gregory Klump, CREA's
Chief Economist. "The sharp rise in sales activity in Toronto following
the announcement provides early evidence confirming this," said Klump.
"It will take some time before the longer term impact of the latest
mortgage regulations on the housing market can be known," said Georges
Pahud, CREA's President. "For that reason, further action shouldn't be
taken until the impact can be measured. In the meantime, if last year
can be used as any guide, sales activity may heat up further as we get
closer to the date on which tighter mortgage regulations come into
effect, especially in some of Canada's pricier markets. That said,
local housing market trends often diverge from national trends, so
buyers and sellers should consult their local REALTOR® to understand how the market is shaping up where they live."
Actual (not seasonally adjusted) national sales activity via the
Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards came in 6.6 per cent below
levels in January 2010. This was the smallest year-over-year decline
since May 2010.
Actual (not seasonally adjusted) new listings on Canadian MLS® Systems normally post their biggest month-over-month increase in
January. January 2011 was no exception, marking the first time since
2007 that new listings more than doubled in January compared to the
previous month. As a result, seasonally adjusted new listings rose 3.9
per cent from December levels, the largest monthly gain since March
Sales activity has been on the rise and prices have been stable since
last autumn, so CREA had been expecting potential sellers who shied
away from the market last summer to begin listing their properties in
early 2011. Because sales activity and new supply rose in tandem in
January, the national resale housing market remained balanced. The
national sales-to-new listings ratio, a measure of market balance,
stood at 55.7 per cent in January 2011, which is little changed from
the previous two months. Just over half of local markets in Canada were
in balanced market territory in January.
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 demand. The seasonally adjusted number of months of inventory stood
at 5.5 months at the end of January on a national basis. This is the
lowest level since last March.
About two-thirds of local markets recorded year-over-year gains in
average price in January 2011. The national average price for homes
sold in January 2011 was $343,675. While this is little changed
compared to the previous three months, it represents an increase of 4.5
per cent compared to January 2010.
Much of the year-over-year gain in January 2011 resulted from a jump in
the number of multi-million dollar home sales in a couple of areas in
Greater Vancouver, the effects of which were amplified at the local,
provincial, and national levels by the fact that actual monthly volumes
for sales activity are low in January compared to other months.
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 neighborhoods 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|