Why sales of property in Canada remain stable

Low mortgage rates and confidence
in the housing market resulted in stable sales of property in Canada during
July.  New figures from the
Canadian Real Estate Association (CREA) show that residential property sales
were stable in July compared to June with gains in some markets.

Sales of property in Canada remain stable

CREA president Gary Morse said:
“The continued stability in national sales activity shows that homebuyers
remain confident about the soundness of investing in a home. Mortgage interest
rates are low and keeping home affordability within reach, making it an
excellent time for buyers to take advantage of very favourable financing,”

Actual sales activity was 12.3
per cent above the national levels reported a year ago. CREA attributed this
increase to weakened activity in July 2010, when monthly sales levels reached
their lowest point since 2002.

A total of 284,537 homes have
been sold via the Canadian MLS Systems so far this year. This is 1.6 per cent
fewer than the first seven months of 2010, although it continues to run in line
with the ten year average.

Edmonton, Montreal, Newfoundland
and Labrador saw the number of residential properties sold increase between
June and July 2011.

The figures also show that the
average price for Canadian properties sold in July 2011 was $361,181 £221,410)
– up 9.3 per cent from twelve months ago. 

Gregory Klump, CREA’s chief
economist, said: “Earlier this year, the national average price was being
skewed upward by sales in some expensive Vancouver neighbourhoods, but this
factor is now diminishing.

“The national share of sales
activity in some of Canada’s more expensive urban centres may retreat further
from elevated levels recorded earlier this year, resulting in an easing trend
for the national average home price. Even so, the stability of Canada’s housing
market will likely continue to stand in stark contrast to further expected
volatility in financial markets.”