Cooling sales in key urban centers combined with strong countrywide sales performance has resulted in a balanced outlook in the Canadian property market compared to 2010. The Canadian Real Estate Association reports the national average of actual sales activity increased 15.8% over last year, and the average price of homes increased 7.7% to $349,916 in August 2011. Market observers believe these numbers reflect a sense of homebuyer confidence in the Canadian real estate market compared to other areas of potential investment. For more on this continue reading the following article from Property Wire.
Sales activity in the residential real estate market in Canada held steady last month and has seen considerable year on year growth, according to the latest report from the Canadian Real Estate Association (CREA).
Year to date sales pulled ahead of 2010 levels for the first time this year and remain in line with the ten year average and the national housing market remained firmly entrenched in balanced territory, CREA said.
The latest report also reveals that there were more balanced local markets in August than at any other time on record and the national average price posted another yea on year gain in August, but has moderated from elevated levels earlier this year.
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However, upward skewing of the national average price is diminishing due to fewer expensive sales and a declining share of national activity in Vancouver and Toronto.
Among major urban centres, Toronto and Ottawa posted a monthly increase in activity while Calgary, Montreal and Vancouver saw activity decline slightly.
‘The housing market in Canada remained on a firm footing in August when compared to volatile financial markets. Through their actions, homebuyers are showing that they remain confident about the stability of the Canadian housing market, and recognize that the continuation of low interest rates represents an excellent opportunity to buy their first home or trade up,’ said Gary Morse, CREA president.
Actual, not seasonally adjusted, sales activity came in 15.8% above national levels reported a year ago. This was the largest year on year on year increase since last April, but largely reflects weakened activity a year ago.
A total of 324,030 homes have traded hands via Canadian MLS® Systems so far this year. While this stands only marginally above levels in the first eight months of last year, it nevertheless marks the first time this year that year to date activity has pulled ahead of 2010 levels.
The number of newly listed homes nationally was also little changed from July to August. This kept the national housing market firmly planted in balanced territory. The national sales to new listings ratio, a measure of market balance, stood at 51.6% in August, unchanged compared to July.
This article was republished with permission from Property Wire.