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MLS Sales Remain Active in July

Resale housing activity in Canada’s major markets edged down slightly in July 2006, but activity for the first seven months of 2006 remained above levels posted for the same period in any other year on record. Sales also remain on track to set a new annual record in 2006.

According to statistics released by The Canadian Real Estate Association, seasonally adjusted home sales activity via the Multiple Listing Service® (MLS®) in Canada’s major markets numbered 27,231 units in July 2006 – a decline of 2.9 per cent compared to June.

The monthly decline in sales activity was largely the result of fewer transactions in Vancouver and Calgary, which more than offset smaller monthly increases in Edmonton and a number of other major markets.

Actual (unadjusted) sales activity in July declined 4.1 per cent compared to the same month in 2005. Even so, transactions for the year-to-date in July were 2.6 per cent ahead of levels posted for the first seven months of last year.

Year-to-date activity reached the highest level on record in Calgary, Edmonton, Saskatoon, Winnipeg, Ottawa, Montreal, Saint John, and a number of other major markets.

Seasonally adjusted MLS® residential new listings numbered 47,557 units in July. This represents an increase of 1.9 per cent from the previous month, and is the highest level in more than 15 years. The monthly decline in sales and the increase in new listings caused the market to become more balanced than during any other month in the past 5.5 years.

New listings reached the highest level on record in Calgary, and the second highest level on record in Toronto and Montreal.

The MLS® residential average price in Canada’s major markets was $294,924 in July 2006 – up 10.1 per cent from levels recorded one year ago. Average price surpassed all previous monthly records in a number of major markets, including Edmonton, London & St. Thomas, St. Catharines, and Montreal.

“Sales edged lower in Vancouver and returned to more normal levels in Calgary, which caused total resale housing activity in Canada’s major markets to ease slightly in July,” said Alan Tennant, FRI, President of The Canadian Real Estate Association. “The increase in new listings in many major markets will provide buyers with a wider selection of homes to choose from. Consumers should work with a REALTOR® to locate and purchase the home of their dreams.”
“Demand for resale homes remained strong across Canada’s major markets in July 2006,” said CREA Chief Economist Gregory Klump. “Interest rates are stable, so strong full-time employment and rising incomes will continue to support the resale housing market over the rest of the year. Market conditions will become increasingly balanced as sales activity softens and active listings continue to rise. This will help to keep price gains in check in the coming months.”

Posted on Sunday, August 20, 2006 at 12:10PM by Registered CommenterElaine in | CommentsPost a Comment

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