New annual record for MLS® home sales in 2007

With one month still to go in the year, MLS® resale housing activity in Canada’s major markets broke all previous annual records by the end of November 2007, according to statistics released by The Canadian Real Estate Association (CREA).

Activity in Canada’s major markets for the year-to-date in November 2007 totaled 345,577 units, up 2.7 per cent from the previous annual record of 336,646 sales set in 2005. Transactions in the first eleven months of 2007 have exceeded last year’s annual total in almost all major markets.

Seasonally adjusted MLS® sales activity rebounded by 3.2 percent month-over-month to 29,992 units in November 2007 – the seventh highest monthly level on record. The monthly increase reflects a rise in activity in Vancouver, Toronto, Edmonton, Calgary, and Saskatoon.

Seasonally adjusted transactions also set a new monthly record in Newfoundland and Labrador in November. Activity reached the second highest monthly level ever in Saskatoon and Regina, and reached the third highest level in Winnipeg and Toronto.

Actual (unadjusted) MLS® sales activity was up 7.6 per cent in November from the same month last year. This was the highest number of transactions ever for the month of November.

Seasonally adjusted new MLS® residential listings edged up 0.4 per cent from October levels to reach 49,720 units – the second highest monthly level ever. New listings rose strongly in Toronto and posted month-over-month gains in Vancouver, Hamilton-Burlington, Calgary and Victoria. This offset fewer new resale housing listings in Edmonton, Winnipeg, London & St. Thomas, Newfoundland and Labrador, Saint John, Montreal and Quebec City.

The monthly rise in sales activity caused the resale housing market to tighten in November compared to the previous month. Activity is at or just below record levels in Regina, Winnipeg and Newfoundland and Labrador, making them the tightest major markets in November. Edmonton, Calgary and Windsor remained the most balanced major markets.

The major market MLS® residential average price rose 11.6 per cent year-over-year to $332,807 in November. This was the seventh consecutive month in which the increase in average price has exceeded ten per cent, and the largest increase since July. Average price surpassed all previous monthly records in Victoria, Kitchener-Waterloo, Montreal and Quebec City.

“Sales activity continues to run strong, even if it is off its peak set earlier this year in nearly all major markets,” said CREA Chief Economist Gregory Klump.  “Demand remains strong due to continuing job and income growth, and upbeat consumer confidence. That is helping retain a seller’s market in most major markets.”

“The number of new listings were virtually the same in November as October, so it was an increase in units sold through MLS® that meant a tighter market,” Klump added. The biggest single market sales increase in November was reported in eastern Newfoundland, including St. John’s, where the number of MLS® units sold jumped 68 per cent compared to October. “It appears a series of announcements about the east coast oil industry has fueled consumer confidence and home buying sentiment in Newfoundland.”

The November MLS® statistics also show the Canadian housing market continues on a different track than the U.S. re-sale housing market. “Our association has not received any reports from REALTORS® that creditworthy homebuyers are having difficulty getting mortgage financing as a result of the sub-prime meltdown. Recent interest rate cuts and the availability of financing will buoy housing demand and economic activity in 2008,” CREA President Ann Bosley said.

“We also expect that financial market uncertainty stemming from the sub-prime mortgage lending meltdown in the U.S. will put the pressure on Canadian interest rates from rising in 2008,” Bosley added. (CREA 17/12/07)