Despite reports that the national housing market is weakening, prices of existing homes remain relatively stable and sales are increasing in some areas.

Edmonton, Alberta - Resale Housing Market not Plunging

Despite reports that the national housing market is weakening, prices of existing homes in Edmonton are relatively stable and sales are increasing, reports the REALTORS® Association of Edmonton.

There is no cause for concern about the health of the Edmonton resale market,” said Marc Perras, president of the REALTORS® Association of Edmonton. “All real estate markets are local and buyers and sellers in Edmonton should look at the details of this market rather than responding to attention getting headlines from reports based on national trends.” Residential housing prices in Edmonton have fluctuated within a narrow range this year and sales of homes through the Multiple Listing Service® (MLS®) continue to be strong.

REALTORS® are confident that the robust Edmonton market will continue. “Sales will increase from demographic changes such as more single women buying houses and condos,” Perras said. “More young people are living alone and boomers and seniors are buying second homes for recreation or to prepare for retirement.”

Perras agreed that new housing starts are down dramatically but insisted that a downturn in new home construction does not reflect on the resale market. He stressed that economic factors will also increase housing sales. The strong Alberta economy continues with low unemployment and high consumer confidence. Alberta will continue to attract migrants from other provinces because of the lack of a sales tax and the lower cost of living in Alberta.

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British Columbia - Fewer Homes Being Added to the Market

British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the MLS® in BC declined 49% to $2.2 billion in August, compared to August 2007. Residential unit sales were down 47% to 5,175 units during the same period. The average MLS® residential price in the province was $421,685, down 4.1% from August 2007.

“Fewer home sales and larger inventories have tilted most BC housing markets in favour of homebuyers,” said Cameron Muir, BCREA Chief Economist. “However, a significant decline in new listings last month may be a signal that potential home sellers are now taking a wait and see approach.”

New MLS® residential listings in August fell 22% from July on a seasonally adjusted basis, the second largest month-over-month decline in 25 years.
Compared to July, nearly 2,000 fewer active MLS® residential listings were available in the province, a decline of 3%. “Home seller fatigue is now a possibility, as slower demand and competition among sellers lessen the chance of a timely sale,” added Muir.

Year-to-date MLS® residential sales dollar volume in the province declined 22% to $25.4 billion compared to the same period last year. Transactions declined 27% to 54,635 units, while the average residential price increased 7% to $465,132 over the same period.

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GTA - Resale Housing Market Continued at a Measured Pace

With 6,424 homes changing hands last month, activity in the Greater Toronto Area (GTA) declined 6% compared to the 6,866 sales that took place in September 2007 and declined 3% compared to the 6,622 transactions that were recorded two years ago.

In the City of Toronto sales were less robust. The 2,546 transactions recorded last month declined 11% from the 2,854 sales in September 2007 and declined 5% from the 2,680 sales recorded in September 2006. Sales increased 6% between September 2006 and September 2007.

“We remain concerned about the Land Transfer Tax in the City of Toronto,” said Ms. O’Neill.

In the 905 Region, the 3,878 sales recorded last month were within 3% of September 2007’s 4,012 transactions, and within 2% of September 2006’s 3,942 sales. Sales in this region increased 2% between September 2006 and September 2007.
From a year-to-date perspective, the GTA resale housing market has declined 14%. In the City of Toronto year-to-date sales have declined 16% from last year. And the 905 Region year-to-date sales have declined 12%.

However, prices throughout the GTA however have remained fairly stable. At $368,549, the average price of a GTA home in September has declined 3% from $380,132 recorded a year ago.

“Although the market is not as robust as it was a year ago, homeowners are continuing to see strong returns on their investment,” said Ms. O’Neill. “On average, Sellers are achieving 97% of their asking price.

With the average number of days on market increasing to 36 days from to 31 days a year ago, it is taking slightly longer for homeowners to achieve a sale.

As with the last few months, we continue to see a handful of neighbourhoods reporting increases compared to a year ago, Scarborough East transactions increased 22% compared to September 2007 based on strong sales of all housing types. Streetsville saw an 11% sales increase due primarily to strong detached home sales. And Newmarket recorded 11% increase in sales compared to a year ago, driven mainly by strong condominium townhouse sales.

“Given that these are trying times for the world economy, in context, the Greater Toronto Area resale housing market continues to fare quite well,” said Ms. O’Neill. “From a long-term perspective, buying a home remains a sound financial decision.”

Ottawa and Hamilton areas - no sales statistics were available at the time of preparing this report.

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Information in this report is collected from the Real Estate Boards operating in each area.