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CREA : Listings stabilize in 3rd Quarter

Posted On: 2008-11-14

The Canadian real estate trends in the article below are also reflected in the Kelowna real estate market.

November 11, 2008: Recent statistics from the Canadian Real Estate Association show a decline in the third quarter of 2008 in the number of properties listed via the MLS at 230,107, 3.1% lower than the high level set in the previous quarter.

For the first time since early 2007, the balance of sales-to new-listings tightened on a quarter-over-quarter basis stabilizing in many provinces.

“The Canadian housing market and pricing environment will continue cooling so long as consumer sentiment about the economy and making major purchases is grounded by headline news,” says CREA chief economist Gregory Klump.

“However, Canadian home sellers are under no financial duress to sell, and many may take their home off the market if it remains unsold once the listing expires. The resulting decline in listings limits the extent to which the balance of sales and new listings will realign. Canadian homebuyers should not expect to see the kind of price correction that’s underway in the US. Unlike Canada, the US market has a massive oversupply of housing due to financial distress.”

Seasonally adjusted national MLS residential home sales activity eased by 2% on a quarter-over-quarter basis to 113,905 units in the third quarter of 2008, compared to 2007. The minor downturn reflects fewer transactions in British Columbia, which offset a rebound in activity in Alberta.
Seasonally adjusted sales activity increased on a month-over-month basis in the majority of local markets in September 2008. In that month, some 38,182 homes were sold, an increase of 2.8% from levels recorded in August. According to CREA, the upsurge “may reflect an influx of buyers prior to the elimination of mortgage default insurance availability for those with less than a 5% down payment.”
The average sale price of residential properties sold through the MLS declined by 5.4%, compared to the same month last year. Lower activity in some of Canada’s pricier markets has affected the overall average price trend this year due to a decrease of their influence in the national average price calculation compared to 2007.

Canadian Real Estate Magazine Copyright ©2008 Key Media Pty Ltd

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