OTTAWA – December 15th, 2010 – National resale housing activity continues its return to normal levels, having risen in November 2010 for the fourth consecutive month, according to statistics released today by The Canadian Real Estate Association (CREA).
The number of new residential listings on Canadian MLS® Systems edged down 0.7 per cent on a seasonally adjusted basis in November. New listings remain 14.6 per cent below the peak reached in April 2010.
The national housing market has been firming up since July 2010 due to improving sales activity and a muted rise in new listings, but overall remains balanced. About 60 per cent of local markets in Canada were in balanced market territory in November. Of the remaining 40 per cent, three-quarters of these markets have a sales to new listings ratio consistent with a being classified as a sellers’ market.
“An increase in new listings is likely to return many sellers markets to balanced territory over the coming months,” said Gregory Klump, CREA’s Chief Economist. “With sales activity having returned to better health and a firm floor under prices, sellers who previously shied away from putting their home on the market are expected to list their home in response to improved housing demand in recent months.”
“Following the chilling lows at the onset of the recent recession and the dizzying heights during the subsequent recovery, the national housing market appears to be returning to some semblance of normalcy,” said Klump. “Changes to mortgage regulations earlier this year were prudent and sufficient, striking the right balance between preventing speculative housing market activity and keeping homeownership affordability within reach for creditworthy home buyers. That’s a good thing, since housing activity helped support Canadian economic growth this year. Rising interest rates and weaker expected job growth are likely to contribute to softer prospects for housing market activity and average price growth next year, reflecting weakening economic growth prospects.”