Canadian home sales edge higher in October
OTTAWA – November 15, 2011 – According to statistics1 released today by The Canadian Real Estate Association (CREA),
national resale housing activity picked up a little further in October 2011 following the uptick in September.
Highlights:
• Sales activity rose in October, marking the highest level since January.
• Actual (not seasonally adjusted) national sales activity in October stayed in line with the 10-year average for the month,
as it has most months this year.
• Year-to-date sales are also even with the 10-year average.
• The number of newly listed homes remained little changed from levels in the previous three months.
• While the combination of stronger sales and stable new listings resulted in a slightly tighter balance of supply and
demand, the national housing market remains firmly rooted in balanced territory.
• The national average price posted a 5.5 per cent year-over-year gain in October, the smallest increase since January.
Homes sold through MLS® Systems of real estate Boards and Associations in Canada rose 1.2 per cent in October 2011 from the
previous month. While national sales activity levels are still best described as average, the monthly rise in October sales built on the
2.5 per cent gain in September, and lifted activity to the highest level since January.
Just over half of all local markets posted monthly sales increases, led by gains in Montreal, Toronto, and Vancouver.
“There was no shortage of headline news in October about global financial market volatility and economic uncertainty, but it doesn’t
appear to have dampened homebuyers’ spirits,” said Gary Morse, CREA’s President. “Interest rates are at low levels and are likely to
stay that way for some time to come. Homebuyers clearly see the opportunities that the current interest rate environment presents.
That said, all real estate is local, so buyers and sellers should consult their local REALTOR® for an understanding of opportunities
in their housing market.”
As has been the case in most months this year, actual (not seasonally adjusted) national home sales in October stayed in line with
the 10-year average for the month. Although up 8.5 per cent from levels one year ago, the gain in large part reflects last year’s
nascent pick-up in activity following a mid-year lull.
A total of 397,561 homes have traded hands via Canadian
MLS® Systems so far this year. This represents an increase
of 1.8 per cent from levels in the first 10 months of 2010, but
is directly in line with the 10-year average for the year-to-date
figure. (Chart A)
The number of newly listed homes remained little changed
in October compared with levels recorded in each of the
previous three months.
“The prevailing economic outlook for Canada is one of slower
but still positive economic growth, with heightened caution
about investment and hiring decisions,” said Gregory Klump,
CREA’s Chief Economist. “Consumer confidence and the
housing sector are being supported by low interest rates and
high employment levels, but their prospects depend on how
Canada’s economic outlook evolves in response to global
economic risks and outcomes in the months ahead.
1 All figures in this release, unless otherwise noted, are seasonally adjusted to remove normal seasonal variation. Removing regular seasonal variations enables
analysis of monthly changes and fundamental trends in the data.
٭ Data table available to media upon request, for purposes of reprinting only.
Chart A
News Release
The Canadian Real Estate Association
Home sales activity over the past couple of months suggests buyers are confident that the Canadian economy will remain relatively
unscathed by global economic risks, since every home purchase is a homebuyer’s vote of confidence in the future. That confidence
is no doubt rooted in the success of coordinated fiscal and monetary policy responses that helped quickly pull Canada out of the last
recession, and a stated willingness and ability to carry out further policy actions if need be.”
While the combination of stable new listings and stronger sales made for a slightly tighter balance between supply and demand in
October, the national housing market remains firmly rooted in balanced territory. The national sales-to-new listings ratio, a measure
of market balance, stood at 53.4 per cent in October, up from 52.8 per cent in September.
Based on a sales-to-new listings ratio from 40 to 60 percent, about 60 per cent of local markets in Canada were in balanced market
territory in October. Of the remaining markets, there was a handful more seller’s markets than buyers’ markets.
The number of months of inventory stood at six months at the end of October on a national basis, little changed from the end of
September (6.1 months). It has remained stable at about six months since April. The number of months of inventory represents the
number of months it would take to sell current inventories at the current rate of sales activity, and is another measure of the balance
between housing supply and demand.
The actual (not seasonally adjusted) national average price for homes sold in October 2011 stood at $362,899. This is up 5.5 per
cent from October 2010, making it the smallest increase since January.
PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales
information from the previous month.
CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual
prices in centres comprised of widely divergent neighbourhoods or account for price differential between geographic areas.
Statistical information contained in this report includes all housing types.
MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed
for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than
100,000 REALTORS® working through more than 100 real estate Boards and Associations.
Further information can be found at http://www.crea.ca/public/news_stats/media.htm.
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Jonathan J. Knight
Broker - Re/Max Clearview
O - 705 428 4500
P - 705 441 6839
F - 705 428 5951
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