Ottawa, ON, September 17, 2012 – According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity dropped sharply from July to August 2012.
- Home sales down 5.8% from July to August.
- Actual (not seasonally adjusted) activity stood 8.9% below levels in August 2011.
- Number of newly listed homes down 1.7% from July to August.
- Housing market remains firmly in balanced territory at the national level.
- National average home price up 0.3% on a year-over-year basis in August.
- The Composite Aggregate Benchmark home price was up 4% in August, its smallest gain in over a year.
“August’s sales figures will no doubt provide comfort to policymakers, providing the first clear indication that the recent changes to mortgage regulations aimed at cooling the market are working as intended,” said Gregory Klump, CREA’s Chief Economist. “With previous changes to mortgage regulations, demand rose between the time changes were announced and their implementation, and invariably fell in the months immediately after being implemented, before recovering to long-term levels. By contrast, recent changes to mortgage regulations were in force more quickly after being announced, so home buyers had far less time to react. As a result, demand didn’t pick up just before the changes took effect, while sales declined once they did.”