EXISTING HOME SALES

 

AS WE WELCOME IN THE YEAR OF 2010 WE ALL HAVE A GREAT DEAL TO CONSIDER.  WHAT WILL THE MARKET DO THIS YEAR.  SHOULD I BUY OR SELL.  WHAT EFFECT WILL THE HST HAVE ON REAL ESTATE.

WELL HERE IS WHAT IS HAPPENING FROM LAST YEAR TO THIS YEAR.

December existing home sales rise 72 per cent from a year earlier

Fri Jan 15, 11:48 AM
Sunny Freeman, The Canadian Press

By Sunny Freeman, The Canadian Press

TORONTO - The Canadian Real Estate Association says last year ended with the best December and best fourth quarter on record in terms of home resales, while prices also rose sharply from their year-earlier levels.

The association said 27,744 units were sold across Canada in December, up 72 per cent from the same month in 2008, which hit the lowest level in a decade in the wake of a global credit crunch.

December also marked the end of the strongest quarterly sales volume ever measured by CREA, with 137,957 homes sold over three months on a seasonally adjusted basis-up 2.6 per cent from the previous record set in the first quarter of 2007.

The 59 per cent year-over-year fourth quarter gain drove last year's annual sales volume above above 2008 levels, but the number of transactions last year was 10.7 per cent below the peak reached in 2007.

The national average price for homes listed on the Multiple Listing Service in December was $337,410, which was 19 per cent higher than in December 2008, but slightly lower than the 2009 average of $348,840.

The association said the large year-over-year increase in the national average price in December reflects how much prices were skewed down in late 2008 by unusually low activity in the country's priciest markets.

"The extraordinary decline in activity one year ago and subsequent rebound, particularly for higher-priced real estate, is stretching current year-over-year comparisons," said association chief economist Gregory Klump.

December sales records were reported in Ontario, Quebec, Saskatchewan, New Brunswick, and Newfoundland & Labrador.

"The continuation of unusually low interest rates may keep national sales activity near current levels over the coming months, as will a blip in housing demand in Ontario and British Columbia from homebuyers motivated to beat the introduction of the HST," said CREA President Dale Ripplinger.

The harmonized sales tax will replace provincial sale taxes in Ontario and B.C.

Klump added that by the second half of 2010, price gains are likely to shrink significantly because a year will have elapsed since the decline and rebound.

"CREA's latest statistics will no doubt spark further bubble talk amongst the usual suspects," Klump said. "Cooler heads recognize that many of the recent gains reflect temporary factors that could fade by summer."

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Nancy Venditello

Nancy Venditello

Sales Representative
CENTURY 21 Executives Realty Ltd.
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