October 30, 2009

Canadian home sales surged to a record high during the third quarter. The Canadian Real Estate Association reported 135,182 homes were sold from July to September, an increase of 18 per cent from the same period of last year, and the most ever sold in the third quarter. Average prices rose 11 per cent, meanwhile, to $327,736.
One particularly interesting figure which sprang out of the numbers was the 17 per cent decline in new listings from the third quarter of 2008. Saskatchewan led this area with a 37.5 per cent fall in new listings in Saskatoon and a 28.3 per cent decline in Regina. 
Fewer listings have meant homes are being sold at a faster pace, but if the trend continues it could put upward pressure on prices. This could in turn, however, draw more sellers into the market.
On a seasonally adjusted basis, 127,941 homes were sold in the third quarter, an increase of 12 per cent from the second quarter.
Momentum has continued to grow throughout the quarter. Sales were up 1.5 per cent from August to September. The increase pulls the seasonally adjusted activity 63 per cent higher than the low hit in January.
Toronto and Vancouver, the country’s two busiest markets, both saw their sales rise sharply, by 28 and 124 per cent respectively.
Prices were up most sharply in Newfoundland and Labrador, where prices increased 14.5 per cent from September 2008. Greater Vancouver was close behind with a price increase of 14 per cent.