Home sales rise for third straight month
Garry Marr, Financial Post · Sunday, Nov. 14, 2010
Existing home sales jumped 4.6% across the country last month on a seasonally adjusted basis from September, the third consecutive monthly increase.
The Ottawa-based Canadian Real Estate Association, which represents about 100 boards across the country, said Monday sales are 13.3% above where they were in July — this year’s low point.
However, October sales are still 21.6% from where they were a year ago and the group warned those comparisons are making improvements in the market less noticeable.
“Large declines in activity compared to year-ago levels are masking recent monthly gains in national sales activity. Record level activity late last year is expected to continue stretching year-ago comparisons over the rest of 2010,” said CREA, in a release.
The group noted that 75% of Canadian markets posted an increase in sales last month, led by the country’s two most expensive property markets, Toronto and Vancouver.
October sales activity is about half way between the low reached in December, 2008 and the record level reached in December, 2009,
“The continuation of low interest rates is supporting sales activity, which has been improving over the past few
months in a number of major markets including Vancouver,” said Georges Pahud, president of CREA.
Supply did increase last month with new listings up 1.3% in October on a seasonally adjusted basis. However, new listings are still 14% off the pick reached in April, 2010.
“National sales activity is now running almost halfway between the highs and lows posted between late 2008 and
late 2009. This suggests that the Canadian housing market may be starting to normalize,” said Gregory Klump, chief economist with CREA. “ After the wild rollercoaster ride that many housing markets have been on, normal and stable market conditions are something that many buyers and sellers will likely welcome.”
Your Vancouver Real Estate Specialist
DavidValente.com