Strong third quarter for MLS home sales
National MLS® resale housing activity edged back in the third quarter of 2007 from its peak in the second quarter but remains very strong, according to statistics released by The Canadian Real Estate Association.
Seasonally adjusted MLS® sales activity totaled 129,451 units in the third quarter of 2007, a 3.2% decline from the record set in the second quarter. The quarterly decline in activity reflects fewer sales in Alberta, Ontario and Quebec. Fewer transactions in those provinces more than offset a quarterly increase in activity in British Columbia.
Seasonally adjusted sales set new quarterly records in Nova Scotia, and Newfoundland and Labrador in the third quarter of 2007. In line with national resale activity, sales reached their second highest quarterly level ever in Saskatchewan, Manitoba, Ontario and Quebec.
Transactions for the year-to-date in September numbered 419,342 units, up 8.4% over the same period last year. Year-to-date sales continue to run ahead of levels for first nine months of 2006 in every province except British Columbia.
A seasonally adjusted total of 41,390 homes traded hands via the MLS® systems of real estate boards in Canada in September, a 3.7% decline from August. Activity was down from August levels in British Columbia, Alberta, Saskatchewan, Ontario and Quebec.
The national MLS® residential average price rose 11.7% year-over-year in the third quarter to $308,543. Average price reached the highest quarterly level on record in British Columbia, Alberta, Saskatchewan, Prince Edward Island and Newfoundland and Labrador.
MLS® residential new listings numbered 213,547 units on a seasonally adjusted basis in the third quarter of 2007. This is the second highest level on record, and just two tenths of one per cent below the record set the previous quarter.
The mild decline in activity caused the resale housing market to become more balanced in the third quarter. A surge in new listings has caused markets in Alberta and Saskatchewan to become considerably more balanced since the beginning of the year. By contrast, the market tightened in most other provinces.
“Over the long haul, the increase in listings combined with the slight decline in sales activity means a strong and stable real estate market, and that is good for both buyers and sellers†said the Canadian Real Estate Association President Ann Bosley. “We do expect to see an adjustment in the Toronto market which will reflect the reaction to the new municipal land transfer tax which will be implemented January 1, 2008. However, we have not seen any of the large adjustments that have affected markets in the United States.â€
“Resale housing activity reported through the MLS® has eased back from its breakneck pace reported in the first half of the year,†the Canadian Real Estate Association’s President added, “but sales activity remains on track to set another annual record this year.â€
Seasonally adjusted MLS® residential dollar volume was valued at $40.2 billion in the third quarter of 2007. This is the second highest level on record, down just 1.4% from the peak in the previous quarter. New quarterly records for dollar volume were set in British Columbia, Saskatchewan, Ontario and Newfoundland and Labrador.
“Dramatic price increases are beginning to temper housing demand in Alberta and Saskatchewan, but activity there is still quite elevated,†said the Canadian Real Estate Association Chief Economist Gregory Klump. “In response to a dramatic increase in listings, resale housing markets there are becoming more balanced, which should result in smaller price increases next year. Strong sales activity and the lack of a dramatic increase in listings have caused markets in other provinces to become tighter since the beginning of the year.â€
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