Home sales activity increased for the third time in as many months, according to statistics released by The Canadian Real Estate Association (CREA). The national average price also rose again, to within short reach of the record levels set a year ago.
Sales activity climbed 11.2 per cent in April 2009 compared to the previous month. This is the largest month-to-month increase in activity in more than five years. Sales activity also reached its highest level in seven months, with 34,838 units trading hands nationally via the MLS.
Price adjustments, access to money and a surge in consumer confidence have all contributed to this current market correction. Prices of homes have made purchasing more affordable for more Canadians. As the prices of homes are determined by what buyers are willing to pay, realtors have had to adjust their pricing strategies to reflect the views in their local markets. The banks are now qualifying more potential buyers and with interest rates dropping with the housing prices, more people are feeling that now is the time to jump on the property ladder.
We are also now witnessing a balancing of supply and demand. The stabilization of the housing market can be attributed to the increase in sales activity and the decline in new listings coming on the market.
If current market trends persist, this spring could witness pre-recession sales activity. The CREA Chief Economist Gregory Klump was quoted as saying "In the recessions of the early 1980s and 1990s, sales activity bottomed out before the job market or even the economy did. Improved affordability may result in Canadian existing home sales leading the economic recovery this year." Century21 Miller Real Estate, is also noticing a shift in market activity. Last month alone, the number of closed transactions exceeded the totals of this time last year.
For more information on buying or selling real estate in Burlington, Hamilton or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit the Sean Kavanagh Real Estate Resource Centre at www.seansells.ca. You can also contact me at 905-220-9198 or at www.realestatechat.ca as I am now a moderator on the Ontario Real Estate chat forum as well as the Burlington, Ontario sub-forum.
I look forward to hearing from you!
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