Rockies West Realty, Invermere BC Real Estate : Canadian Real Estate Association

Bank of Canada Signals Rates Likely On Hold Until 2014

Rockies West Realty — Mon, 18 Feb 2013 20:57:00 GMT

Published January 23, 2013 by Canadian Real Estate Association

The Bank of Canada announced on January 23rd, 2013 that it is keeping its key policy interest rate at 1 per cent, where it has been held for more than two years. In providing guidance on where interest rates are heading, the Bank said interest rate hikes are “less imminent than previously anticipated.”

The Bank acknowledged that Canadian economic growth slowed more abruptly in the second half of 2012 than it had previously anticipated. It also recognized a marked deceleration in the growth of household debt, moderation in the housing sector, and softer than expected inflation.

The Bank now expects inflation to return to its 2 per cent target sometime in the second half of 2014. That represents a significant weakening in the Bank’s outlook for inflation; in October, the Bank expected inflation to return to target by the end of 2013. Consumer Price Inflation rose by 0.8 per cent in November 2012.

The Bank said it still expects the Canadian economy to gain strength this year, but it lowered its forecast for economic growth to just 2 per cent in 2013. By contrast, its growth forecast for 2014 was raised to 2.7 per cent versus its previous forecast reading of 2.4 per cent contained in its previous Monetary Policy Report (MPR) published in October 2012.

The bottom line is that economic growth is expected to remain modest but positive, consistent with low inflation and low interest rates. At the same time, growth in household debt burdens, which the Bank has repeatedly flagged as a major risk in this low interest rate environment, is showing positive signs of topping out as housing market activity continues to stabilize at a more sustainable levels. Combined with extremely well anchored expectations for inflation, that means the Bank is in no hurry to raise interest rates anytime soon, with the first such move in that direction unlikely to be for at least another year.

As of January 23rd, 2012, the advertised five-year lending rate stood at 5.24 per cent. It has been unchanged at this level since the beginning of June 2012.

CREA Updates Resale Housing Forecast (Dec 2012)

Rockies West Realty — Mon, 17 Dec 2012 20:01:00 GMT

OTTAWA –December 17, 2012 – The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service^® (MLS^®) Systems of Canadian real estate Boards and Associations in 2012 and 2013.

When CREA’s resale housing forecast was published in September, activity showed the first signs of slowing in the wake of new mortgage lending regulations. Demand has remained at lower levels, and this trend is expected to persist through the end of the year. Lower than projected third quarter sales have downgraded the prospects for activity this year in almost every province.

National resale housing activity is now projected to reach 456,300 units in 2012. This represents a 0.5 per cent decline from 458,412 sales in 2011, and stands 0.9 per cent below the 10-year average (2002 – 2011).

Read the complete forecast - http://creanews.ca/2012/12/17/crea-updates-resale-housing-forecast-6/

Canadian Home Sales Pull Back in January

Rockies West Realty — Wed, 15 Feb 2012 17:18:00 GMT

OTTAWA – February 15, 2012 – According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity retreated in January 2012 from the strong finish reported for December 2011.

Highlights:

Home sales were down 4.5% from December to January.
Actual (not seasonally adjusted) activity came in 4.0% above levels in January 2011, and stood even with the 5 and 10 year averages for January sales.
The number of newly listed homes edged down 1.4% from December to January.
With sales down by more than new listings, the national market shifted further into balanced territory.
The national average home price was up less than 2% year-over-year in January, ranking it among the smallest increases of the past year.

“The national housing market is stabilizing and remains well balanced,” said Gary Morse, CREA’s President. “That said, forecasts for economic and job growth going forward vary widely for different parts of the country, suggesting a possible continuation of a softening trend in some markets, as well as the potential that demand will pick up based on strong fundamentals in others. All real estate is local, so talk to your local REALTOR® to understand how price trends in your neighbourhood are shaping up.”

“Year-over-year comparisons in the national average price are expected to become volatile and may turn negative, reflecting average price developments in the first half of 2011 in Vancouver,” said Gregory Klump, CREA’s Chief Economist.

“At that time, high-end home sales in Vancouver’s priciest neighbourhoods surged to all-time record levels, which skewed the national average price upward considerably. A replay of this phenomenon is not expected this year.

As a result, comparisons for national average price to year-ago levels over the coming months will reflect an upwardly skewed base effect. For this reason, year-over-year comparisons should be kept in perspective. Developments in the MLS® HPI will provide important guidance on price trends, since it is not affected by the problem of compositional shifts in the mix of sales activity.”

Read the complete article

Canadian Home Sales Pick Up In September

Rockies West Realty — Wed, 19 Oct 2011 16:13:00 GMT

OTTAWA - October 17, 2011 - According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity picked up in September 2011.

Highlights:

Sales activity rose 2.7 per cent in September from the previous month.
Holding in line with the ten-year average, activity during the first nine months of this year pulled ahead of sales over the same period last year.
The number of newly listed homes held steady when compared to the previous month.
The national housing market tightened in September from the month before, but remains firmly entrenched in balanced territory.
The national average price posted the smallest year-over-year increase since January.

“The Canadian housing market remains a bright spot against a backdrop of mixed headline news about the global economy,” said Gary Morse, CREA President. “Low mortgage rates continue to draw buyers to the housing market, while recently tightened mortgage regulations are working as intended. That said, housing market trends often diverge from national trends due to local factors, so buyers and sellers should talk to a local REALTOR® to understand housing market trends at play where they live.”

“Canada’s housing market remains stable amid continuing financial market volatility, contributing to Canadians’ confidence in the economy and providing support for Canadian economic growth,” said Gregory Klump, CREA’s Chief Economist. “Interest rates are expected to remain low for longer, and evidence suggests that recent changes to mortgage regulations are preventing the kind of excesses they were designed to avert. Both of these developments are good news for the housing market.”

Further information can be found at http://creanews.ca/.

Canadian Home Sales Hold Steady in August

Rockies West Realty — Fri, 23 Sep 2011 18:37:00 GMT

OTTAWA - September 15, 2011 - According to statistics1 released today by The Canadian Real Estate Association (CREA), national resale housing activity in August 2011 remained stable for the second consecutive month.

Highlights:
• Sales activity was stable from July to August, but posted another big year-over-year gain reflecting weakened demand last summer.
• Year-to-date sales pulled ahead of 2010 levels for the first time this year, and remain in line with the ten-year average.
• The number of newly listed homes was also little changed from July to August.
• The national housing market stayed firmly entrenched in balanced territory.
• There were more balanced local markets in August than at any other time on record.
• The national average price posted another year-over-year gain in August, but has moderated from elevated levels earlier this year.
• 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.

“The housing market in Canada remained on a firm footing in August when compared to volatile financial markets,” said Gary Morse, CREA President. “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.”

“Once again, economic and financial market headwinds outside Canada are keeping interest rates lower for longer,” said Gregory Klump, CREA’s Chief Economist. “Those headwinds will likely persist until, and indeed after, fiscal quagmires in the U.S. and Europe are resolved. In the meantime, the Bank of Canada will have ample reason to delay raising interest rates further, which is supportive for the Canadian housing market.”

Further information can be found at http://www.crea.ca/public/news_stats/media.htm.

Canadian Home Sales Stable In July

Rockies West Realty — Wed, 17 Aug 2011 15:50:00 GMT

OTTAWA – August 16, 2011 – According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity was stable on a month-to-month basis in July following an uptick in June.

Highlights:
• Sales activity was stable from June to July, but posted a big year-over-year gain due to weakened demand in July 2010.
• Year-to-date sales continue to run in line with the ten-year average.
• The number of newly listed homes inched up by less than one per cent from June to July.
• The national housing market remains firmly entrenched in balanced territory.
• The national average price posted the largest year-over-year gain since April 2010, but was below where it stood in June.
• 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.

“The continued stability in national sales activity shows that homebuyers remain confident about the soundness of investing in a home,” said Gary Morse, CREA’s President. “Mortgage interest rates are low and keeping home affordability within reach, making it an excellent time for buyers to take advantage of very favourable financing. Prices and affordability evolve differently among local markets, so buyers and sellers should consult their local REALTOR® to better understand how the outlook for housing supply, demand, and prices is shaping up in their housing market.”

The number of months of inventory stood at 6.1 months at the end of July on a national basis, which is little changed from the end of June (6.0 months). 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. [Editor's note: the Kootenay area currently has 19 months of inventory, denoting a buyer's market with supply outstripping demand]

“Changes in the national average home price are open to being misinterpreted,” added Klump. “They often signify changes in the mix of sales activity across and within local markets, rather than a rising or falling price trend for typical homes in a specific market.”

“The national share of sales activity in some of Canada’s more expensive urban centres may retreat further from elevated levels recorded earlier this year, resulting in an easing trend for the national average home price,” he added. “Even so, the stability of Canada’s housing market will likely continue to stand in stark contrast to further expected volatility in financial markets.”

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.

Further information can be found at http://www.crea.ca/public/news_stats/media.htm.

Canadian Home Sales Pick Up In June

Rockies West Realty — Tue, 19 Jul 2011 18:38:00 GMT

OTTAWA - July 15, 2011 - According to statistics released today by The Canadian Real Estate Association (CREA), home sales activity over MLS® Systems of Canadian real estate Boards climbed in June 2011 compared to May.

Highlights:

Sales activity climbed from May to June, with a big year-over-year gain reflecting falling demand in June 2010.
Year-to-date sales remain in line with the ten-year average.
The number of newly listed homes also rose from May to June.
National housing market remains firmly entrenched in balanced territory.
National average price still being skewed upward by the value of sales in expensive Vancouver neighbourhoods, with price gains in other markets providing additional loft.

Activity remained stable in Toronto while declining slightly in Vancouver and the Fraser Valley. Major markets that saw gains compared to May included Calgary, Montreal, Ottawa, London, Hamilton, and Victoria.

“Canadian housing demand remains resilient, thanks to low interest rates, job growth, and home buyer confidence in the economy,” said Gary Morse, CREA’s President. “That said, local housing market trends often differ from national trends, so buyers and sellers should consult their local REALTOR® to understand how the housing market is shaping up where they live.”

“The Canadian housing sector remains on a solid footing,” said Gregory Klump, CREA’s Chief Economist. “The rise in monthly home sales activity at the end of the second quarter, upbeat business sentiment and hiring intentions, and signs that the Bank of Canada is in no rush to raise interest rates bode well for home sales activity and prices going into the second half of 2011.”

Read the complete article ...

Canadian Home Sales Edge Down in April

Rockies West Realty — Wed, 18 May 2011 15:28:00 GMT

OTTAWA, May 17th, 2011 – Statistics released today by The Canadian Real Estate Association (CREA), reveal that national resale housing activity softened in April when compared to March 2011.

The decline in April sales activity reflects changes to mortgage regulations that came into effect previously. As anticipated, the changes pulled forward some sales activity that would have otherwise occurred at a later date.

Seasonally adjusted national home sales activity was down 4.4 per cent in April 2011 compared to the previous month. As expected, declines were largest in some of Canada’s more expensive and active markets, including Toronto, Vancouver, and the Fraser Valley.

Changes to mortgage regulations and other transitory factors also boosted transactions in April last year at the expense of activity in subsequent months. This also contributed to a broadly based decline in sales activity in April 2011 compared to year-ago levels.

Actual (not seasonally adjusted) activity was down 14.7 per cent from levels reported last April.

“Although down nationally, sales activity in April this year compared to April last year was up in a number of local housing markets,” said Gary Morse, CREA’s President. “Housing market trends often evolve and diverge from national trends due to local factors, so buyers and sellers should consult their local REALTOR^® to understand how the housing market is shaping up where they live.”

“Last April, several transitory factors artificially boosted sales. This included the impending tightening of mortgage rules, speculation about higher interest rates and the looming introduction of the HST in some provinces. This year, additional measures to tighten mortgage rules were implemented in March and the other transitory factors were absent,” said Gregory Klump, CREA’s Chief Economist. “This makes it difficult to compare the two months in order to reliably gauge the impact of the latest round of mortgage rule changes.”

Further information can be found at: http://creastats.crea.ca/natl/

CREA Updates Resale Housing Forecast

Rockies West Realty — Tue, 10 May 2011 19:36:00 GMT

OTTAWA – May 9, 2011 – The Canadian Real Estate Association (CREA) has revised its forecast for home sales activity via the Multiple Listing Service^® (MLS^®) Systems of Canadian real estate Boards and Associations for 2011 and 2012.

“Home buyers expect mortgage interest rates to rise and are mindful of their current and future debt levels. They’re doing their homework to better understand how their mortgage payments and family budget might change down the road before they make an offer,” said Gary Morse, CREA President. “That said, even though mortgage rates have increased recently, they remain very attractive and are keeping financing within reach for many homebuyers,” added Morse. “Some housing markets are hotter than others, so buyers and sellers would do well to consult their local REALTOR® to understand how supply, demand and prices are evolving in their housing market.”

“As expected, recent changes to mortgage regulations brought forward some sales activity into the first quarter that would have otherwise occurred later in the year, particularly in some of Canada’s more expensive housing markets,” said Gregory Klump, CREA’s Chief Economist. “This is likely to result in a milder version of the volatility in sales activity that we saw last year.”

CREA expects home sales activity to regain traction after dipping in the second quarter as economic recovery and hiring continues. “While interest rates are expected to rise later this year, they will still be within short reach of current levels and remain supportive for housing market activity,” said Klump. “Continuing job growth will underpin housing demand, keeping the housing market in balance and stabilizing home prices.”

Further information can be found at: http://www.creanews.ca

National Home Sales Hold Steady in March

Rockies West Realty — Mon, 18 Apr 2011 20:07:00 GMT

OTTAWA – April 15th, 2011 – According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity held steady in March 2011 compared to February.

Seasonally adjusted national home sales activity in March came in one tenth of a percentage point above levels for the previous month, with stable demand in most large urban centres.

With national sales in each of the first three months of 2011 running close to their five- or ten-year monthly averages, seasonally adjusted national sales activity in the first quarter of 2011 was up 4.5 per cent from levels recorded in the fourth quarter of last year, and reached the highest quarterly level in a year.

Most of the quarterly increase in seasonally adjusted national sales activity was due to demand in Vancouver and Toronto. Recent changes to mortgage regulations may have caused a number of sales in some of Canada’s more expensive housing markets to be brought forward into the first quarter that would have otherwise occurred later in the year.

Sellers looking to tradeup before changes to mortgage regulations took effect made their move early, resulting in a significant rise in newly listed homes in January and February of this year. With changes to mortgage regulations looming in March, seasonally adjusted new residential listings for the month dropped five per cent month-to-month.

Steady sales activity combined with fewer new listings tightened the national resale housing market. The national sales-to-new listings ratio, a measure of the balance between supply and demand, stood at 56.5 per cent in March. This kept the national housing market firmly entrenched in balanced territory, with March marking the firmest reading for national market balance in more than a year.

Based on sales-to-new listings ratios, more than half of local markets in Canada could be considered balanced in March, with two-thirds of the remaining markets considered to be as sellers’ markets.

“The majority of local housing markets across Canada are well balanced, but not all of them are,” said Gary Morse, CREA’s President. “Within a province or local market, the balance between resale housing supply and demand can vary widely and evolve quickly, so buyers and sellers should speak with a local REALTOR® to understand housing market trends where they live.”

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 5.6 months at the end of March on a national basis. This was unchanged from the previous month. Almost half of all local markets saw the number of months of inventory shrink compared to the previous month.

Throughout the first quarter of 2011, the national average price was skewed higher by strong activity in a few pricey areas of Greater Vancouver. March 2011 was no exception, with an increase of 8.9 per cent year-over year.

“A record number of multi-million dollar property sales in Richmond and Vancouver West are pushing up average prices for Greater Vancouver, British Columbia and nationally,” stated Gregory Klump, CREA’s Chief Economist. “If Vancouver is excluded from the equation, the national average price increase is cut by more than half to 4.3 per cent.”

“Looking ahead, evidence suggests that the potential rush of sales activity in March before recent changes to mortgage regulations took effect was a story that was largely focused in condo sales activity in Greater Vancouver. This confirms that the expected impact on sales activity of recent changes to mortgage regulations will likely be minor over the near term. Interest rates are now widely expected to remain on hold until at least mid-July, which is supportive for resale housing demand, market balance and prices,” Klump added.

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.

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

- 30 -

For more information, please contact:

Pierre Leduc, Media relations
The Canadian Real Estate Association
P: 613-237-7111 or 613 884-1460
E: pleduc@crea.ca

Average February for Canadian home sales

Rockies West Realty — Wed, 16 Mar 2011 16:25:00 GMT

Ottawa - March 15th, 2011 - According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity in February 2011 ran close to the five-year average for the month, continuing a theme that has characterized the past four months.

Actual (not seasonally adjusted) national sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards came in 5.9 per cent below levels reported last February. This marks the smallest year-over-year decline in nine months, and the fourth consecutive month in which sales activity was on par with the five-year average for that month.

Seasonally adjusted home sales activity edged down 1.6 per cent in February 2011 compared to the previous month on a national basis. Sales activity eased in almost two-thirds of all local markets from the previous month, offsetting monthly increases in activity among other markets including Vancouver and Calgary.

Nationally, new listings in February edged up 1.5 per cent from the previous month on a seasonally adjusted basis, which builds on the 4.3 per cent monthly increase in January. The rise in new listings is consistent with CREA's expectation that many sellers, who shied away from listing their home last summer when the national housing market softened, would list their home in early 2011, having by now observed improved demand and stable prices.

With both sales activity and new supply little changed in February, the housing market remained firmly in balanced territory. The national sales-to-new listings ratio, a measure of market balance, stood at 53.5 per cent in February. This is little changed from the previous four months.

"Most local housing markets in Canada are well balanced, but there are still a number of buyers' and sellers' markets," said Georges Pahud, CREA's President. "Housing market trends often evolve and diverge from national trends due to local factors, so buyers and sellers should consult their local REALTOR® to understand how the housing market is shaping up where they live."

The number of months of inventory represents the number of months it takes to sell current inventory 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 5.7 months at the end of February on a national basis. This is little changed from the 5.5 months reported in January, when it reached the lowest level since last April.

The national average price for homes sold in February 2011 rose 8.8 per cent year-over-year to $365,192. "The average price has been skewed higher nationally and in British Columbia recently by a record number of multi-million dollar sales in a couple of areas in Greater Vancouver," said Gregory Klump, CREA's Chief Economist.

"When you take Vancouver out of the equation, the year-over-year increase in the national average price drops to 3.4 per cent," added Klump. "While that's still stronger than in the past six months or so, national average price gains may recede after tighter mortgage regulations take effect in March."

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.

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

For more information, please contact:

Pierre Leduc, Media relations
The Canadian Real Estate Association
P: 613-237-7111 or 613-447-4532
E: pleduc@crea.ca

CREA Boosts Annual Resale Housing Forecast

Rockies West Realty — Thu, 10 Feb 2011 18:02:00 GMT

Published February 8, 2011 CREANEWS.CA

OTTAWA - February 8, 2011 - The Canadian Real Estate Association (CREA) has revised its 2011 forecast for home sales activity via the Multiple Listing Service^® (MLS^®) Systems of Canadian real estate Boards and Associations, and extended it to 2012.

Sales in the second half of 2010 rebounded faster than CREA had previously expected. "The hand-off going into 2011, together with the highs and lows for sales activity posted in 2010, provided guidance for CREA's revised forecast," said Gregory Klump, CREA Chief Economist.

"Home buyers recognize that low mortgage interest rates represent a once in a lifetime opportunity. At the same time, they expect that rates will rise, so they're doing their homework in order to understand what it could mean in terms of higher mortgage payments down the road before they make an offer," said Georges Pahud, CREA President. "The housing market and buyer psychology is different now than it was at the beginning of last year, so buyers and sellers would do well to consult their REALTOR® to understand local market trends."

The upward revision to CREA's forecast for 2011 reflects recent improvements in the consensus economic outlook and a further expected improvement in consumer confidence. National sales activity is now expected to reach 439,900 units in 2011, representing an annual decline of 1.6 per cent. In 2012, CREA forecasts that national sales activity will rebound by three per cent to 453,300 units, which is roughly on par with the ten year average.

"Recent additional changes to mortgage regulations will further ensure that buyers don't buy more home than they can afford when interest rates inevitably rise," said Klump. "The announcement of the new changes to mortgage regulations will likely bring forward some sales into the first quarter that would have otherwise occurred later in the year, particularly in some of Canada's more expensive housing markets. This is expected to produce a milder version of the volatility in sales activity that we saw last year which resulted from additional transitory factors."

Three transitory factors contributed to volatility in sales activity last year: changes in mortgage regulations announced last February, the early withdrawal by the Bank of Canada of its conditional commitment to keep interest rates on hold until the second half of 2010, and the introduction of the HST in BC and Ontario during the summer of 2010.

CREA expects that home sales activity will gain traction after dipping in the second quarter as the economic recovery and job growth continue, incomes grow, and consumer confidence further improves. "Even though mortgage interest rates are expected to rise later this year, they will still be within short reach of current levels and remain supportive for housing market activity. Strengthening economic fundamentals will keep the housing market in balance, which will keep home prices stable," said Klump.

The national average home price is forecast to rise 1.3 per cent in 2011 and 2012, to $343,300 and $347,900 respectively. Average price is expected to rise modestly in most provinces, reflecting the continuation of a healthy balance between supply of, and demand for, homes listed for sale. Although the supply of new listings is expected to trend higher, the expected continuation of sellers' market conditions in Manitoba is forecast to result in a bigger percentage increase in average price in 2011 and 2012 compared to other provinces.

* Provincial weighted average price for Quebec; does not affect unweighted national average price calculations. Information on Quebec's weighted average price calculation can be found at:
http://www.fciq.ca/immobilier-economiste.php

National Resale Housing Activity Improves in October

Rockies West Realty — Tue, 23 Nov 2010 18:26:00 GMT

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.

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.

Residential Property Prices Set To Fall in 2011

Rockies West Realty — Sun, 14 Nov 2010 22:18:00 GMT

Thursday, 11 November 2010 13:10

All signs point downward, in terms of residential property prices for 2011, according to the Canadian Real Estate Association.

According to recent findings, prices are predicted to fall 1.3% in 2011 after a rise of 3.1% this year. Additionally, there is an expectation that sales numbers will continue to fall as weak economic prospects put downward pressure on demand, despite interest rates being low. They warn that these numbers could fall by 9% next year.

‘Housing demand and supply is stabilizing. 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,' explains CREA chief economist Gregory Klump.

Citing unfavourable economic conditions as the root cause, CREA's stats for the said three months ending in September tell a story of weaker than expected results, due to ‘lacklustre economic and job growth and muted consumer confidence'.

Klump feels that consumer sentiment, while better than it was, has to improve before real improvements can be seen in the market.

While sales activity was began weakly in the third quarter of 2010, it has picked up steam. There is momentum gaining for home sales activity, indicating that the resale housing market is stabilizing. However, CREA has had to adjust their annual forecast as a result of weaker than expected third quarter activity.

Forecasts for national sales activity indicate that expectations are now to reach 442,200 units in 2010, representing an annual decline of 4.9%. While monthly levels for sales activity show stability, year on year comparisons are likely to remain pulled thin well into 2011 due to the record level activity reported in late 2009 and early 2010.

Similarly, CREA is predicting in 2011, for all provinces to see slight price gains, with the exception of British Colombia, Alberta and Ontario. Because there is lower sales activity in British Columbia and Ontario they think there will be a decline of 1.3% in the national average price to $326,000.

Debt repayment is at the forefront of many consumers' minds- rather than the accumulation of new debts. Says Klump, ‘Many households will be focused on paying down their debts before the Bank of Canada resumes hiking interest rates next year. 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.'

Forward movement of the market will still rely heavily on interest rates. CREA expects that next year will herald in more medium-range interest rates, which are conducive to favourable, stable housing market conditions.

BC Housing Market Feels Effects of HST in July

Rockies West Realty — Thu, 19 Aug 2010 17:44:00 GMT

OTTAWA (August 16, 2010) - The Canadian Real Estate Association (CREA)says national home sales activity continued to trend down in July 2010. The decline was almost entirely the result of fewer sales in British Columbia and Ontario. A slowdown in demand in these two provinces had been widely expected in July, as many purchases were brought forward into the first half of the year in advance of the introduction of the HST.

Actual (not seasonally adjusted) national sales activity was 30 percent lower in July 2010 compared to last year's record July. Year-to-date transactions are still up 5.6 per cent compared to the first seven months of last year, although this gap is expected to continue to shrink as the year progresses, since activity rose sharply over the second half of last year, reaching levels that are unlikely to be matched in the final five months of 2010.

"The soft sales figures we're seeing right now can be attributed in part to accelerated home purchases earlier in the year," said CREA President Georges Pahud. "Activity may remain at lower levels for some time, but ultimately we expect a more stable market to emerge, with demand coming back into line with economic fundamentals."

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