December 17, 2012 – According to statistics released today by The Canadian Real Estate Association (CREA), national home sales activity edged back down in November 2012 on a month-over-month basis, returning to where it stood in August. Demand geared down in August in the wake of tighter mortgage lending rules, and has since been running about eight per cent below levels in the first half of the year.
- Home sales down 1.7% from October to November.
- Actual (not seasonally adjusted) activity down 11.9% from November 2011.
- Number of newly listed homes down 0.9% from October to November.
- Housing market remains firmly in balanced territory.
- National average price for home sales down 0.8% on a year-over-year basis in November.
- MLS® HPI up 3.5% in November, marking its smallest gain since May 2011.
“National sales activity has remained fairly steady at lower levels since mortgage rules were changed earlier this year, but that stability masks some real differences in trends among local housing markets,” said CREA President Wayne Moen. “As always, all real estate is local, so buyers and sellers should talk to their REALTOR® to understand how the housing market is shaping up where they live or might like to.”
“National sales activity lacks the momentum it had a year ago,” said Gregory Klump, CREA’s Chief Economist. “Interest rates have remained low and the economic backdrop has remained supportive for housing activity, so that should leave little doubt that recent changes to mortgage regulations are responsible for having cooled activity.”