National home sales activity via the Multiple Listing Service® (MLS®) edged slightly lower in October 2006 but remains on track to set a new annual record, according to statistics released by The Canadian Real Estate Association.
Seasonally adjusted home sales numbered 38,303 units in October 2006 – down 0.8 per cent from levels recorded in September. Small monthly declines in British Columbia, Ontario, and Quebec more than offset an increase in activity in New Brunswick.
Monthly activity continued to soar in Saskatchewan, and rebounded strongly in New Brunswick. October sales in New Brunswick were on par with the highest monthly level on record, which was reached in March 2006. MLS® home sales in Saskatchewan recorded the highest level ever for the month of October, and the second highest monthly level on record.
On a year-to-date basis, activity in the first 10 months of the year remained 0.7 per cent above levels recorded for the same period last year, so sales are still on track to set a new annual record in 2006. Transactions for the first 10 months of this year continued to run ahead of 2005 levels in all provinces except British Columbia and Ontario.
Seasonally adjusted new MLS® listings totaled 67,122 units in October – a decline of 1.9 per cent from September, but still the fifth highest monthly level on record. New listings reached the highest level in a decade in British Columbia, and their third highest level on record in Alberta.
The month-over-month decline in new listings was larger than the decline in sales activity. While the national resale housing market tightened slightly as a result, it remains more balanced than at almost any other time in the past five years.
The resale housing market remains tightest in Saskatchewan, Manitoba, and to a lesser extent in Alberta. A more balanced market continues to be the story in Central and Atlantic Canada. British Columbia has also become more balanced as sales continue to trend lower while the number of listings climbs.
Seasonally adjusted MLS® residential dollar volume was valued at $11.0 billion in August 2006, representing an increase of 2.4 per cent compared to September. MLS® dollar volume set a new monthly record in New Brunswick, and reached the highest level on record for the month of October in every province except British Columbia and Prince Edward Island.
The national MLS® residential average price rose 10.2 per cent year-over-year to $282,156 in October 2006 – the ninth double-digit increase of the year. MLS® residential average price reached the highest monthly level on record in British Columbia and Alberta, and set new records for the month of August in every province except New Brunswick and Newfoundland. Price increases remained highest in British Columbia and Alberta.
"New listings continue to trend higher in British Columbia and Alberta, which is taking some of the steam out of many local housing markets in those provinces," said CREA's Chief Economist Gregory Klump. "A more balanced market gives buyers more negotiating power and time to make purchase decisions. This trend is forecast to continue, and result in smaller price increases in 2007."
"Resale housing markets across Canada remained on solid ground in October 2006," noted CREA President Alan Tennant, FRI. "Each local market and neighborhood is unique. REALTORS ® have in-depth knowledge of local market conditions, and both buyers and sellers benefit from using the professional services provided by their REALTOR®."
If you would like more information on the local market conditions, please visit me at www.DanMcCarthy.ca
