Resale housing market shows further improvement in january
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Resale housing market shows further improvement in january

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    Resale housing market shows further improvement in january Resale housing market shows further improvement in january Document Transcript

    • CANADIAN REAL ESTATE ASSOCIATIONTransmitted by CNW Group on : February 15, 2011 09:00Resale housing market shows further improvement in JanuaryOTTAWA, Feb. 15 /CNW/ - National resale housing activity climbed further in January 2011, according to statistics released todayby 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 thehighest level since April 2010. Led by Vancouver and Toronto, seasonally adjusted sales activity posted monthly gains in morethan half of all local Canadian markets in January. National sales activity has improved steadily since last summer, and nowstands 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 pullforward sales activity into the first quarter of 2011, particularly in some of Canadas more expensive housing markets," saidGregory Klump, CREAs Chief Economist. "The sharp rise in sales activity in Toronto following the announcement provides earlyevidence 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, CREAs President. "For that reason, further action shouldnt be taken until the impact can be measured. Inthe meantime, if last year can be used as any guide, sales activity may heat up further as we get closer to the date on whichtighter mortgage regulations come into effect, especially in some of Canadas pricier markets. That said, local housing markettrends often diverge from national trends, so buyers and sellers should consult their local REALTOR ® to understand how themarket is shaping up where they live."Actual (not seasonally adjusted) national sales activity via the Multiple Listing Service ® (MLS ® ) Systems of Canadian real estateBoards 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 increasein January. January 2011 was no exception, marking the first time since 2007 that new listings more than doubled in Januarycompared to the previous month. As a result, seasonally adjusted new listings rose 3.9 per cent from December levels, the largestmonthly gain since March 2010.Sales activity has been on the rise and prices have been stable since last autumn, so CREA had been expecting potential sellerswho shied away from the market last summer to begin listing their properties in early 2011. Because sales activity and new supplyrose in tandem in January, the national resale housing market remained balanced. The national sales-to-new listings ratio, ameasure of market balance, stood at 55.7 per cent in January 2011, which is little changed from the previous two months. Justover 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 ofsales activity, and is another measure of the balance between housing supply and demand. The seasonally adjusted number ofmonths 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 forhomes sold in January 2011 was $343,675. While this is little changed compared to the previous three months, it represents anincrease 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 acouple of areas in Greater Vancouver, the effects of which were amplified at the local, provincial, and national levels by the factthat 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 ® salesinformation from the previous month.CREA cautions that average price information can be useful in establishing trends over time, but does not indicateactual prices in centres comprised of widely divergent neighborhoods or account for price differential betweengeographic areas. Statistical information contained in this report includes all housing types.MLS® is a co-operative marketing system used only by Canadas real estate Boards to ensure maximum exposure of propertieslisted for sale.The Canadian Real Estate Association (CREA) is one of Canadas largest single-industry trade associations, representing morethan 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