The number of existing homes sold in Canada has dropped considerably in the third quarter of 2008 and into the fourth quarter, according to the Canadian Real Estate Association (CREA). Sales of existing homes in October fell 14 percent across Canada from September, marking the largest monthly decline since June, 1994.
Seasonally adjusted residential sales throughout the country were 32,048 units in October, which is the lowest monthly level since July, 2002. The average price of properties sold through the Multiple Listing Service was CA $281,122, down 9.9 percent from a year ago when it stood at $312,024.
Although sales and prices dropped throughout most of the country, prices are still rising in the eastern provinces. Sales in Newfoundland and Labrador remain near record levels and prices. In the country’s largest markets, though, prices and sales have been falling considerably. Fewer sales in Toronto, the nation’s largest market, accounted for nearly a third of the decline in national sales.
“Many homebuyers across Canada battened down the hatches in October as they were concerned with dire headlines about stock market volatility and a global economic downturn,” said CREA’s Chief Economist Gregory Klump.
“The gap between national sales activity and the number of new listings is at its widest since 1990,” Klump added. “This situation is unlikely to persist for long. New listings will decline, which will stabilize the market.”
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