But national resale housing activity rose slightly in November from the
previous month and the real estate market remains balanced but is edging
closer to a sellers market, the report also shows.
Sales activity edged upward by 0.5%, the third straight month in which
national activity was up from the previous month’s levels. Activity rose
in about 60% of all local markets with a record November in the
Halifax-Dartmouth region offsetting a dip in sales in Toronto.
‘The Canadian housing market is proving resilient in the face of ongoing
global economic and financial uncertainty, to the benefit of Canadian
economic growth,’ said Gary Morse, CREA’s president.
Throughout most months in 2011, actual (not seasonally adjusted)
national home sales were in line with the 10 year average. November
sales marked a break in that pattern, climbing seven per cent above the
10 year average and reaching the fourth highest level on record for the
month.
‘Toward the end of every year, there’s a natural inclination to compare
how momentum for national sales activity and average price compare to
the year before,’ said Gregory Klump, CREA’s chief economist.
‘National sales activity picked up late last year, and November’s
results suggest that a similar trend may be playing out again this year.
By contrast, national average price also picked up toward the end of
last year, whereas this year it has held steady after having peaked in
the spring,’ he explained.
‘With interest rates expected to remain low for longer, the housing
sector will no doubt be closely watched for signs of excess. That said,
current trends for resale housing and new home construction suggest that
tightened mortgage regulations are working as intended and fostering
economic stability in Canada,’ he added.
The number of months of inventory nationally stood at six months at the
end of November. It has held steady at about this level since April,
which is above levels posted during the first quarter. The number of
months of inventory represents the number of months it would take to
sell current inventories at the current rate of sales activity, and is
another measure of the balance between housing supply and demand.
The actual (not seasonally adjusted) national average price for homes
sold in November 2011 stood at $360,396. This represents a year on year
increase of 4.6%, its smallest increase since January.