Real Estate Market watch across Canada - June 2009

Market Watch - June 2009 Housing Sales Continue to Trend Upward

Figures released by real estate boards around the country are showing a positive upward trend in sales driven by improved affordability and less uncertainty about the future.

"Home sales have bounced back from the extraordinarily low levels recorded during the winter months," said Cameron Muir, BCREA Chief Economist. "Improved affordability and less uncertainty about the future are the main factors driving home sales higher."

“This was the best May on record for residential resale home sales in Ottawa,” said Board President Rick Snell. “Homes in every price range are selling well, from starter homes to luxury properties. Homebuyers and sellers are showing a lot of confidence in the Ottawa real estate market,” he added.

“We're now seeing greater balance in the housing market than what we have over the last while," says Linda Smardon, President of the Nova Scotia Association of REALTORS®. “The bridge between buyer demand and housing supply is continuing to narrow, which helps maintain stability in housing prices," she adds.

Below is a brief summary of sales activities in some areas across the country:

Alberta - Housing sales continue to trend upward

Calgary, June 1, 2009 – According to figures released by the Calgary Real Estate Board, 1,584 homes was sold in the Calgary metro area in May. This is a 23% increase on sales in April.
“The spring market has received an added boost from a growing number of first-time buyers entering the market,” says Bonnie Wegerich, President of the Calgary Real Estate Board.
In the month of May, homes in Calgary metro priced at $400,000 or less accounted for nearly 70% of all home re-sales. “We are seeing the first year-over-year gain in single family home sales since last September,” says Wegerich. “A pent up demand has been building—with many first-time home buyers now taking advantage of affordable prices, record low interest rates and federal government housing incentives,” added Wegerich.

The average price of a single family Calgary metro home in May 2009 was $436,427, showing an increase of 2% from April 2009, when the average price was $426,311, and showing a decrease of 9% from May 2008, when the average price was $479,564. The average price of a Calgary metro condominium was $275,212, showing a 1% decrease from April 2009, when the average price was $277,953, and a decrease of 12% over last year, when the average price was $311,816.
“The gap between supply and demand at the end of last year was pushing prices down,” says Wegerich. “But since December we have seen five consecutive months of increases in home sales, while inventory continues to trend lower. The gap has narrowed and prices are stabilizing.” Single family Calgary metro new listings added for the month of May totalled 2,235, up 11% from the 2,010 new listings added in April 2009, and showing a decrease of 35% from May 2008, when 3,432 new listings came to the market.

British Columbia - Home sales continue to climb

Vancouver, June 11, 2009 – The British Columbia Real Estate Association (BCREA) reported that Multiple Listing Service (MLS®) residential sales in the province rose 3% to 8,270 units in May 2009 compared to the same month last year. It was the first year-over-year increase since December 2007. The month of May also posted the highest number of residential sales since April 2008, on a seasonally adjusted basis, and was the fourth consecutive month of rising home sales.
"Home sales have bounced back from the extraordinarily low levels recorded during the winter months," said Cameron Muir, BCREA Chief Economist. "Improved affordability and less uncertainty about the future are the main factors driving home sales higher."
"The combination of stronger consumer demand and fewer homes for sale is stabilizing home prices in many BC markets," added Muir.
Year-to-date, MLS® residential sales dollar volume was down 31% to $11.7 billion over the same period last year. A total of 26,359 units were sold in the first five months of 2009, down 26% from 2008, while the average MLS® price declined 7% to $443,252. Nova Scotia - Average price of homes rises to new record in April

Nova Scotia, May 22, 2009 –
The average price of residential properties in Nova Scotia climbed to its highest level on record in April 2009. According to statistics provided by the Nova Scotia Association of REALTORS®, the average price for residential properties sold through the MLS® system in Nova Scotia was $206,668, a 5.4% increase over April of 2008.
The national average price was down 3.2% year-over-year. The average price in Halifax-Dartmouth, where homes are more expensive than in other markets in the province, rose by 6%. The increase in average price was greatest in the Annapolis Valley region at 15%, followed by the South Shore at 11%.
“The pricing trends indicate that consumers still have confidence in our housing market,” says Linda Smardon, President of the Nova Scotia Association of REALTORS®.
The number and value of sales were down in April 2009 when compared to April 2008. A total of 857 houses traded hands via the MLS® system in Nova Scotia, a 27% decline in sales activity. The value of all MLS® residential property sales in Nova Scotia decreased by 23%.
New listings posted their fourth consecutive year-over-year decline in April 2009, down 7% from year-ago levels.
“We're now seeing greater balance in the housing market than what we have over the last while," says Smardon. “The bridge between buyer demand and housing supply is continuing to narrow, which helps maintain stability in housing prices," she adds.
Active listings continue to rise in Nova Scotia, but year-over-year gains are slowing as new listings trend lower. The number of active residential listings increased by 9% which is the smallest year-over-year increase in 11 months.

Ontario -
Record-breaking number of resale homes sold in May

Toronto, June 2, 2009

– Greater Toronto REALTORS® reported 9,589 sales in May which is almost 2% up from May 2008—the first annual increase since December 2007.
“The resale housing market in the GTA has remained resilient in the face of challenging times globally,” according to TREB President Maureen O’Neill. “Many home buyers have taken advantage of extremely low mortgage rates.”
The average price for May transactions was $395,609—down less than 1% compared to the same month last year.

“The average resale home price has moved in line with last year’s level because of tighter market conditions experienced this Spring,” stated Jason Mercer, TREB’s Senior Manager of Market Analysis. “Home sales have increased strongly relative to new listings, bolstering home prices.”

Ottawa, June 3, 2009

– Members of the Ottawa Real Estate Board sold 1,969 residential properties in May through the Board’s Multiple Listing Service® system compared with 1,896 in May 2008, an increase of 3.9%. That number also represents a 19% increase over the 1,594 sales recorded in April 2009.
Of those sales, 348 were in the condominium property class, while 1,621 were in the residential property class. The condominium property class includes any property, regardless of style (i.e., detached, semi-detached, apartment, etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“This was the best May on record for residential resale home sales in Ottawa,” said Board President Rick Snell. “Homes in every price range are selling well, from starter homes to luxury properties. Homebuyers and sellers are showing a lot of confidence in the Ottawa real estate market,” he added. The average sale price of residential properties, including condominiums, sold in May in the Ottawa area was $312,045, an increase of 5.3% over May 2008.

The average sale price for a condominium-class property was $231,351, an increase of 4.6% over May 2008.

The average sale price of a residential-class property was $329,368, an increase of 4.7% over May 2008. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

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