The Canadian Real Estate Association (CREA) has recently reported that national resale housing market activity bounced back strongly in the second quarter of 2009 above levels reported for the same period last year. Demand continues to rebound sharply in some of the most expensive markets in the country, skewing the national average price upward.
"Low interest rates have improved the affordability of homeownership, as have price adjustments in housing markets that previously experienced rapid price increases," said CREA Chief Economist Gregory Klump. "Housing markets where negotiations recently favoured the buyer have become more balanced and the stage is being set for modest price appreciation as inventories are drawn down by sales."
According to statistics released by CREA, actual (not seasonally adjusted) home sales, via the Multiple Listing Service (MLS) of Canadian real estate boards, totaled 147,351 units in the second quarter of 2009 - the fourth strongest quarterly sales figure ever. Up 1.4 per cent from the second quarter of 2008, this marks the first year-over-year increase in quarterly activity since the fourth quarter of 2007.
On a seasonally adjusted basis, national MLS home sales numbered 114,173 units in the second quarter, jumping up a record 31.5 per cent from the first quarter of 2009.
Seasonally adjusted resale activity in the second quarter was up from the previous quarter in about 85 per cent of local markets. Quarterly activity increases in Toronto (45 per cent), Vancouver (77 per cent), Montreal (33 per cent), Calgary (66 per cent) and Edmonton (39 per cent) contributed most to the national increase in activity.
Strong upward momentum for monthly sales activity was sustained throughout the second quarter. June marked the fifth consecutive month in which activity was up from month-ago levels. Some 41,304 homes traded hands via the MLS of real estate boards in Canada on a seasonally adjusted basis in June 2009. This is up 8.7 per cent from May and represents the first time since January 2008 that monthly activity topped 40,000 units.
"Sales momentum remains strong going into the second half of 2009," said CREA President Dale Ripplinger. "Chances are good that the number of transactions in the second half of 2009 will surpass levels in the first half of the year."