The Canadian housing market has followed the broader economic slowdown, but was not a cause of the downturn. Some potential home buyers were less certain about their positioning in the economy over the past year. Until the economy rebounds, and along with it consumer confidence, the number of existing home sales will be more moderate in comparison to the average over the last ten years.

Ontario - A market correction not a crash

GTA - 2,670 resale housing transactions in January
(Toronto - February 5, 2009) TREB Members reported 2,670 sales in January from the 5,075 sales reported in the first month of 2008. Of these, 1,106 transactions took place in the City of Toronto compared to 2,128 in January 2008. In the surrounding “905” area, 1,564 sales were recorded, from 2,947 last year.

The GTA housing market has not been immune to the economic slowdown in Canada. Home prices also moderated in January. The average MLS selling price dipped to $343,632. The average price was $364,415 in the City of Toronto, from $404,202 in 2008. In the surrounding regions (“905” area code), the average price was $328,935 from $352,965 last year. Buyers have experienced more choice in the existing home marketplace and lower selling prices have resulted.

It should be noted that the GTA housing market has followed the broader economic slowdown, but was not a cause of the downturn. Home prices have been affordable throughout the new millennium. The average family can still qualify for a mortgage on the average priced home. This remains the case today. Given that we are not facing an early-1990s-style affordability crisis, the rebound in the housing market will likely be quick once economic recovery takes hold.

Ottawa - Neither boom nor bust, but holding steady
(Ottawa - February 4, 2009) Members of the Ottawa Real Estate Board sold 530 residential properties in January through the Board’s Multiple Listing Service® system compared with 652 in January 2008, a decrease of 18.7%. There were 467 sales in December 2008.

“While the market in Ottawa may not be booming, it’s certainly not a bust either. Sales declined the same amount in January as they did in December, which tells me that buyer confidence is holding steady here in the national capital,” said Board President Rick Snell.

“Also, most homes in Ottawa are holding their value, in spite of the fact that winter is always a quieter time of year for real estate, and in the face of a generally pessimistic economic outlook across Canada,” Snell added.

The average price of residential properties, including condominiums, sold in January in the Ottawa area was $288,105, an increase of 1.5% over January 2008. The Board cautions that average 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 price is calculated based on the total dollar volume of all properties sold.

Hamilton - Market easing continues into January
(Hamilton, Ontario - February 4, 2009) The Hamilton-Burlington area real estate market showed a total of 476 unit sales in January, indicating a 42% decrease over the same period last year, according to the Multiple Listing Services (MLS®) statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB). New units listed are down 8.5% when compared to January 2008.

The total unit sales, when compared to December, were 3.7% higher in January.

“As predicted in our annual market forecast, 2009 started on a slow note. While the units sold and average price in January were up over December, there is no question that we are experiencing a market shift,” said Bruce King, RAHB President. “However, last month 1,435 residential properties were listed on our MLS® system, a sign that there is movement in the marketplace.”

Residential properties sold during January totalled 447 which included 371 freehold properties and 76 condominiums. Commercial sales for January, including industrial, farm, vacant land and business, totalled 29 units.

The average price of freehold residential properties sold in the month of January was $274,474, a decrease of 7.2% over the same month last year, but an increase of 4% over last month.

In the condominium market the average price of condominiums in January was $216,099, an increase of 2.3% over January 2008, and an increase of 13% over last month. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.

January’s total average residential sales price decreased 5.6% over the same month in 2008. The total number of units listed for sale during January was 1,592, which is 8.6% fewer than were listed in the same period in 2008.

British Columbia – Recessionary conditions slow housing market

(Vancouver, BC – February 2, 2009) The British Columbia Real Estate Association (BCREA) released its Forecast Update for the first quarter of 2009 today. BC Multiple Listing Service (MLS®) residential sales are forecast to decline 9% from 68,923 units in 2008 to 62,650 units this year. Residential sales in 2010 are forecast to rebound 8% to 68,000 units. The ten-year average is 82,800 units.

"The global financial crisis and world-wide recession will continue to take their toll on the BC economy this year," said Cameron Muir, BCREA Chief Economist. "World events have pulled Canada and BC into a recession, where concern for job security and declining net worth are keeping many potential homebuyers on the sidelines."

"A continuing imbalance between supply and demand will put some additional downward pressure on home prices this year," added Muir.

The average MLS® residential price is forecast to decline 13% to $396,600 in 2009. Home prices in the province are expected to be relatively stable in 2010, forecasted to average at $389,000.

BC housing starts are forecast to fall 45% to 19,000 units this year as a result of rising inventories, weak consumer demand and tight credit conditions.

Next year is expected to be a year of stabilization in the economy and the housing market. Real GDP growth in the province is forecast to rise a modest 1.5% and job losses in 2009 are expected to give way to some gains in employment in 2010.

Alberta – residential sales were positive in January

(Edmonton, February 3, 2009) Residential sales in January are always slow as buyers recover from their holiday excesses and stay bundled up from the cold. January sales were slow at the beginning of the month but picked up steam as the days grew longer. REALTORS® sold 730 residential properties in January compared to 608 in December (sales up 20%). Sales prices were also up in all categories as compared to the previous month.

“Nobody rings a bell when prices hit the bottom,” said Charlie Ponde, president of the REALTORS® Association of Edmonton. “The bottom is evident only after several months of rising prices. One month does not make a trend but the market is certainly welcoming to home buyers.” He pointed to the lowest interest rates in years, the large selection of homes available and recently announced economic stimulus packages as reasons for the increasing market activity. The amount of RRSP savings that can be applied to a first-time home purchase was increased from $20,000 to $25,000 and a tax rebate for home renovation expenses were announced in the recent federal budget. Both measures will encourage home buyers.

The average price of a single family home in January was $352,689 - up a quarter of a