CREA News

OTTAWA – November 15th, 2010 – National resale housing activity rose for the third consecutive month in October 2010, according to statistics released by The Canadian Real Estate Association (CREA).

Seasonally adjusted national home sales activity via the Multiple Listing Service^® (MLS^®) Systems of Canadian real estate Boards climbed 4.6 per cent in October 2010. The monthly rise in activity builds on similar increases in August and September. As a result, activity now stands 13.3 per cent above July levels, when it reached this year’s low point. Three-quarters of local markets posted monthly increases in seasonally adjusted activity in October, led by Toronto and Vancouver.

As further evidence that the market is returning to normal, sales activity in October stood halfway between the recessionary low reached in December 2008, and the record level activity posted in December 2009.

Actual (not seasonally adjusted) national sales activity in October 2010 was 21.6 per below levels for October 2009, when activity set a new record for the month.

National sales activity rebounded last year without a single monthly decline and hit record levels in the second half of 2009. As a result, 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 (Exhibit 1).

The number of new residential listings on Canadian MLS^® Systems edged up 1.3 per cent on a seasonally adjusted basis in October. New listings remain 14 per cent below the recent peak reached in April 2010.

National sales activity and new listings have swung widely but synchronously, which has kept the market in balanced territory since the spring.  Over half of all local markets in Canada are balanced, with an almost equal proportion of the remainder in buyers’ or sellers’ market territory.

The national average price trend remains stable, in keeping with a balanced market. The national average price trend has remained fairly steady for more than a year, but only recently is this being reflected in year-over-year comparisons. The national average price for homes sold in October 2010 was $343,747, up less than a percentage point compared to one year ago. October marks the fourth consecutive month in which the average home price has remained roughly even with year-ago levels.

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 measures the balance between housing supply and demand. The seasonally adjusted number of months of inventory stood at 6.2 months at the end of October on a national basis. This is down from 6.5 months in September. The number of months of inventory now stands a full month below where it was in July.

“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, CREA’s President. “National housing market trends are improving, but local market trends can differ significantly, so home buyers and sellers should consult their REALTOR^® to understand how their housing market is evolving.”

“National sales activity is now running almost halfway between the highs and lows posted between late 2008 and late 2009,” said Gregory Klump, CREA’s Chief Economist. “This suggests that the Canadian housing market may be starting to normalize.  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.”

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

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For more information, please contact:

Linda Kristal, Director, Communications
The Canadian Real Estate Association
P: 613-237-7111 or 613-447-4532
E: lkristal@crea.ca

November 12, 2010 – The Canadian Real Estate Association (CREA) unveiled its latest home buying and selling innovation, a new mobile application of REALTOR.ca for Windows® Phone 7.  REALTOR.ca is operated by CREA, and is the most visited real estate website in Canada, with about 350 000 property listings available at any one time.

“Allowing people to check out houses whenever they want, wherever they want, will make the home and property hunt that much easier,” said CREA President Georges Pahud.  “Today’s consumers want portable, on-the-go information and REALTORS® across Canada are happy to be able to meet this need with the new REALTOR.ca app.”

The REALTOR.ca app provides house hunters with the functionality of REALTOR.ca while taking advantage of Windows Phone 7 device features such as GPS.  The app allows users to search for houses and properties across Canada and to connect with REALTORS® to view, buy or sell a property.  Photos, newly listed properties and open house information are all available.

Using the handheld’s GPS technology, and the REALTOR.ca search function, users can search for properties near their location and get driving directions too.  Interactive BING mapping is embedded to allow consumers to focus on specific neighbourhoods.

“Buying a home is often the biggest financial transaction of one’s lifetime.  Easily accessible, detailed information about homes and neighbourhoods, as well as fingertip access to the expertise of REALTORS®, helps people make well-informed decisions” said Pahud.

The REALTOR.ca app was developed through a partnership with Microsoft Canada Inc. and Navantis.

The REALTOR.ca app will be available for other handheld devices in the coming weeks.  Plans are currently underway for iPhone and BlackBerry versions.

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.

PDF version

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For more information, please contact:

Linda Kristal, Director, Communications
The Canadian Real Estate Association
P: 613-237-7111 or 613-447-4532
E: lkristal@crea.ca

OTTAWA – November 5, 2010 – The Canadian Real Estate Association (CREA) has lowered its forecast for home sales activity via the Multiple Listing Service® (MLS®)Systems of Canadian real estate Boards and Associations for 2010 and 2011.

Sales activity in the third quarter of 2010 began on a weak footing, but gained traction as the quarter progressed. Improving momentum for home sales activity suggests the resale housing market is stabilizing, but weaker than expected third quarter activity has reduced CREA’s annual forecast.

National sales activity is now expected to reach 442,200 units in 2010, representing an annual decline of 4.9 per cent. While monthly levels for sales activity are stabilizing, year-over-year comparisons are likely to remain stretched well into 2011 due to the record-level activity reported in late 2009 and early 2010.

Lackluster economic and job growth, muted consumer confidence, and the resumption of interest rate increases are expected in 2011. Against this economic backdrop, national home sales activity is forecast to decline by nine per cent to 402,500 units.

“Interest rates are expected to resume their return to more normal levels next year, but will still be at levels that are friendly to the housing market,” said Georges Pahud, CREA’s President. “For the tenth year in a row, more than 400,000 homes are expected to change hands over the MLS® Systems of Canadian real estate Boards and Associations next year.”

Levels for sales activity and new listings have swung widely until recent months. Despite their volatility, movements in sales activity and new listings have remained in synch and have kept the resale housing market balanced since early 2010. The overall supply of homes for sale has also been trending lower in recent months. The resale housing market has remained balanced on a national basis and in most provinces, resulting in stable average price trends.

The national average home price is forecast to rise 3.1 per cent in 2010 to $330,200, with increases in all provinces. The small revision to CREA’s average price forecast reflects changes to the forecast for provincial sales activity and corresponding provincial contributions to the national average price calculation. The balance between supply and demand is forecast to remain stable, resulting in stable price trends.

Modest average price gains are forecast in 2011 in all provinces except British Columbia, Alberta, and Ontario. Lower sales activity in British Columbia and Ontario are expected to result in a 1.3 per cent decline in the national average price to $326,000.

“Housing demand and supply is stabilizing,” said Gregory Klump, CREA’s Chief Economist. “That’s good news for home buyers, who will feel less hurried to make an offer than they did when transitory factors ignited housing demand in early 2010. It’s also good news for home sellers, who will feel more confident about price stability now that the housing market has become balanced.”

“Interest rates are widely expected to remain low for some time due to recent downward revisions by the Bank of Canada to its outlooks for economic growth and inflation. Consumer sentiment will likely remain under pressure until economic prospects improve meaningfully,” said Klump.

“In the meantime, many households will be focused on paying down their debts before the Bank of Canada resumes hiking interest rates next year,” Klump added. Economic uncertainty is likely to keep potential homebuyers in a cautious mood, so the continuation of low and stable interest rates is unlikely to cause housing demand or prices to swell.”

For more information, please contact:
Linda Kristal
Director of Communications
The Canadian Real Estate Association
613-237-7111
Email: lkristal@crea.ca