Canadian Real Estate Rebounds to Record Levels

OTTAWA (October 15th, 2009) – National resale housing activity climbed to the highest level of any third quarter on record. Home sales via the Multiple Listing Service of Canadian real estate boards totalled 135,182 units in the third quarter of 2009, according to statistics released by The Canadian Real Estate Association (CREA). This is the highest level of activity on record for the period from July to September. The number of transactions was up 18% from the third quarter of last year, representing the biggest year-over-year increase since early 2002.

Seasonally adjusted national MLS home sales numbered 127,941 units in the third quarter, up 12 per cent from the previous quarter. Building on two previous quarterly increases, seasonally adjusted MLS home sales activity now stands 48 per cent above the low reached in the fourth quarter last year.

“Momentum for sales activity remained strong throughout the third quarter,” said CREA President Dale Ripplinger. “Low interest rates, rebounding consumer confidence and an improving overall sense of economic security continue to draw homebuyers to the housing market.”

Resale activity in September 2009 posted the fourth consecutive increase from year-ago levels, all of which exceeded 15%. Sales numbered 42,497 in September, up 17% year-over-year and a new record for the month (see graph above). The national MLS residential average price surpassed all previous monthly levels in September 2009, rising 13.6% year-over-year to $331,602 (see graph). July and August also posted new average price records for their respective months. A number of provinces set new average price records for the month of September, and Ontario posted the highest average price on record.

Nationally, the number of months of inventory was 4.9 months in September 2009. This is down slightly compared to August, and remains well down from the recessionary peak of 12.8 months in January 2009. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.