The steam is definitely out of Canada's real estate market, according to figures released by the Canadian Real Estate Association (CREA). August sales were lower than June. However prices were up 4.9% from June of last year. But the rate of growth in prices has slowed down substantially.

"Market conditions have remained tight enough to support higher home prices in comparison to last year. Under current mortgage lending standards, a household earning the average income in most areas of the country can comfortably afford the mortgage payments on an average priced home. Market conditions and the affordability picture would have to change dramatically before a sustained drop in the average selling price would take place," said Jason Mercer, Toronto Real Estate Board’s (TREB) Senior Manager of Market Analysis. 

According to the revised housing forecast issued by the CREA, we are expecting a downward trend through the fall, but we still expect to come out with a decent year sales-wise. Canada remains an attractive destination for foreign buyers, a fact that continues to affect real estate market activity in most urban areas.     

Ontario - August sales and new listings down, prices up 

Toronto, September 3, 2010 - Greater Toronto REALTORS® reported 6,232 sales through the Multiple Listing Service® (MLS®) in August 2010. This represented a 22% decrease compared to the 8,035 sales recorded during the same period in 2009. New listings decreased by 1% year-over-year to 10,488. 

"The prospect of interest rate hikes and new mortgage lending rules prompted some households to purchase a home sooner than they otherwise would have this year. The result has been a larger than normal dip in sales over the summer months. With this said, it is important to recognize that sales on the year were 8% higher than in 2009," said Toronto Real Estate Board President Bill Johnston. 

The average price for August transactions was $411,012 – up 6% compared to the average of $387,921 reported in August 2009. The median price was $358,000, from the $338,000 recorded during August of 2009. 

Ottawa, September 3, 2010 - After an HST influenced dip in sales in July, August saw a return to a more normal number of sales. Members of the Ottawa Real Estate Board sold 1,122 residential properties in August through the Board’s Multiple Listing Service® system compared with 1,211 in August 2009, a decrease of 7.3%.

Of those sales, 266 were in the condominium property class, while 856 were in the residential property class.

“The number of sales year-to-date is slightly ahead of last year’s sales for the same period, and last year’s sales volume was the highest ever. This shows the stability of the Ottawa Real Estate Market,” said immediate Past President Rick Snell. “The market is in a balanced position in relation to the number of homes for sale and the demand for properties. This is a good market for both buyers and sellers. I expect to see a normal fall market with longer selling times and stable prices,” he added.

The average sale price of residential properties, including condominiums, sold in August in the Ottawa area was $321,969, an increase of 2.1% over August 2009.

The average sale price for a condominium-class property was $262,999, an increase of 16.8% over August 2009. The average sale price of a residential-class property was $340,294, an increase of 0.1% over August 2009.  

Hamilton, September 7, 2010 –  The Greater Hamilton-Burlington area resale market reported a total of 1,021 units sold in August, indicating a decrease of 9.5% from the same month last year but an increase of almost 2% over July of this year. Total unit sales for the first eight months of 2010 are being reported at 8.1% higher than the same period last year, while new units listed are 14.4% higher year-to-date.

“Our August sales are being measured against a very strong August market last year,” said Joe Ferrante, President of the REALTORS® Association of Hamilton-Burlington (RAHB), “but are still entirely in the realm of normal August numbers. Year-to-date numbers indicate that we can still expect to see higher sales at the end of this year compared to last year.”

Residential properties sold during August totaled 978 which included 783 freehold properties and 195 condominiums. Commercial sales for August, including industrial, farm, vacant land and business, totaled 43 units.

The average price of freehold residential properties sold in the month of August was $318,904, an increase of 1.7% over August last year. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.

In the condominium market, the average price of condominiums in August was $223,154, an increase of 3.4% over August 2009. The total number of units listed for sale during August was 1,591, which is a 13% increase over the number listed in the same period in 2009.
 
British Columbia - Buyer’s market conditions continue in Greater Vancouver 

Vancouver, September 2, 2010  - Conditions in the Greater Vancouver housing market continued to favour buyers in August. Since April, prices have edged down slightly as the number of sales and the number of properties coming on to the market have been declining. 

Residential property sales in Greater Vancouver totaled 2,202 in August. This represents a 36% decline from the 3,441 sales in August 2009, the second highest selling August ever recorded, and a 2.4% decline compared to July 2010. 

From a wider perspective, last month’s residential sales represent a 40.4% increase over the 1,568 residential sales in August 2008, a 34.9% decline compared to August 2007’s 3,384 sales, and a 26.6% decline compared to August 2006’s 2,998 sales. 

New listings for detached, attached and apartment properties declined 17.5% to 3,750 in August 2010 compared to August 2009 when 4,544 new units were listed. Total active listings in Greater Vancouver currently sit at 15,421, a 6.1% decline from last month and a 29% increase from August 2009. 

“We’re seeing moderate demand, low interest rates and a healthy but slowing stream of supply in our marketplace, all variables that favour those looking to purchase a home,” said Jake Moldowan, president of the Real Estate Board of Greater Vancouver (REBGV). “The last few months have also shown some stability when it comes to price fluctuations in the region, which is a welcome trend after reaching record highs in April.” 

Since spring, housing prices have decreased 2.8% compared to the all-time high reached in April when the residential benchmark price was $593,419. Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 6.9% to $576,597 in August 2010 from $539,600 in August 2009.  

Alberta –  August housing market quietens

Edmonton, September 2, 2010 - The REALTORS® Association of Edmonton reports that the average price of single family property in the Edmonton area has softened with a small drop for the second consecutive month. Prices plateaued at just over $388,000 from March to June. Condominium prices have dropped steadily from their high point of $253,000 in April and are down another 2.99%.  

“Despite the two month drop, single family homes are still priced a bit higher than they were at the same time last year,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “There may be bargains in the condominium market as prices are about $10,000 less than a year ago, on average.”  

The average priced single family property was down 1.96% and sold for $372,253 in August. Condominiums dropped in price for the fourth consecutive month and sold on average for $232,230 in August. The duplex/rowhouse average price was up 16.7% to $352,662 but based on just 56 sales so the average may be skewed by the selection of properties sold. The average residential sale price (which includes all types of residential property) was $325,588; down just 1.3% from last month. 

Residential sales in August were down from the previous month at 1,195 as were listings at 2,700. This sales-to-listing ratio of 44% increased the available inventory to 8,822 units at the end of the month. Sales were slower as the average days-on-market was up six at 57 days.  

“Although the market has quieted this summer the inventory is being constantly refreshed,” said Westergard. “Our 3,200 REALTORS® are listing 50 to 100 properties every day and a wide choice is available in all areas. We don’t expect a big push this fall but homes are selling although the sales cycle is longer than many sellers would like.”

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