National MLS® resale housing activity set a fourth consecutive monthly record in July, according to statistics
recently released by the Canadian Real
Seasonally-adjusted sales numbered 45,421 units in July 2007, an increase of 0.8 per cent from the previous record set in June.
Despite the record-breaking pace, CREA indicated there are signs that most of Canada is returning to a more balanced market.
“The resale housing market in many Canadian cities is more balanced than earlier in the year,” said Ann Bosley, president of CREA. “Overall market fundamentals like consumer confidence and employment continue to be a positive
Seasonally-adjusted new MLS® listings totaled 71,370 units in July. This represents the second highest level on record, down 1.2 per cent from the record set in June.
The resale market was tightest in Manitoba.
WinnipegREALTORS® president Wes Schollenberg said over 60 per cent of the active MLS® listings available in July sold.
“A remarkable 78 per cent of all listings entered on MLS® this year have been sold, he added.
National year-to-date transactions also set a new record. In the first seven months of this year, home sales via board and association MLS® systems numbered 336,286 units, a 9.7 per cent increase over the same period in 2006. New year-to-date records were posted in every province.
The national MLS® residential average price rose 12.6 per cent year-
over-year in July to $311,495. This was the strongest year-over-year average price growth since May 2006. Average price set new records in Alberta, Saskatchewan, and Newfoundland and Labrador.
Seasonally-adjusted MLS® residential dollar volume rose 2.2 per cent to $14.1 billion in July which was the highest level on record.
“The U.S. sub-prime mortgage market meltdown may dent U.S. consumer spending, and by extension, demand for Canadian exports,” said CREA Chief Economist Gregory Klump. “It may cause the Bank of Canada to revise its economic growth forecast downward, or otherwise identify it as a distinct downside risk when it announces its bank rate decision on September 5.
“Until recently, the bank was expected to raise its trend-setting bank rate on September 5. It is now expected to hold rates steady until financial market uncertainty begins to settle. Steady interest rates would help support economic growth, consumer confidence and home buying activity,” he added.