National resale housing market activity returned to pre-recession levels in May 2009. The rebound in activity is being led by an increase in transactions in some of the most expensive markets in the country, which is skewing the national average price upward.
According to statistics released by the Canadian Real Estate Association (CREA), actual home sales via the Multiple Listing Service® (MLS®) of Canadian real estate boards totalled 49,521 units in May 2009. This is less than 1% below activity in the same month one year ago. Year-over-year declines have been shrinking since the beginning of the year.
“This is the third consecutive record setting month this year and the fourth month where sales exceeded the previous year’s sales,” said Ottawa Board President Rick Snell. “Year-to-date sales as of the end of June are up 1% over the same time period in 2008. We have seen a strong recovery from the slow start to this year,” he added.
The combination of historically low interest rates and sellers reducing their asking prices has created greater affordability,” Fraser Valley Real Estate Board President Paul Penner said. Buyers are looking at monthly mortgage costs that are 20-25% less than they were a year ago. That translates into hundreds of dollars a month in savings.
A recent market poll confirms that first-time homebuyers and people “buying-up” are taking advantage of the current market conditions. Results show that 32% of buyers were first-time homebuyers and 22% were buyers moving from an apartment or townhouse to a detached house.
“The re-emergence of seller’s market conditions has exerted upward pressure on home prices,” explained Jason Mercer, Toronto Real Estate Board’s (TREB) Senior Manager of Market Analysis. “Look for sales to remain high relative to listings in the second half of the year. This will keep home prices growing.”
Below is a brief summary of sales activities in some areas across the country:
Ontario - GTA resale housing market posts best June on record
Toronto, July 6, 2009 – In June 2009, Greater Toronto REALTORS® reported a record 10,955 sales, up 27% from June 2008. The seasonally adjusted annual rate of sales in June was 100,700.
“The record result in June is testament to the fundamentally sound housing market in the GTA,” said TREB President Tom Lebour. “An increasing number of households have been confident in purchasing a home in the region’s affordable and diverse resale housing market.”
The average price for June transactions was $403,972—up by 2% compared to the same month last year.