OTTAWA -- November 15, 2005 -- The number of homes trading hands via the Multiple Listing Service® (MLS®) in Canada's major markets remained above 28,500 units for the fifth consecutive month in October 2005, according to statistics released today by The Canadian Real Estate Association.
Seasonally adjusted home sales via the Multiple Listing Service® (MLS®) in Canada's major markets totaled 28,627 units in October 2005. That represents a decrease of 2.7 per cent from the previous month, when sales reached their second highest monthly level on record. Transactions remain on track for a new annual record in 2005, with sales activity in the first ten months of the year up 4.5 per cent compared to the same period last year.
Seasonally adjusted sales surpassed all previous records for the month of October in Calgary, Hamilton and Kitchener-Waterloo. Unadjusted sales during the first ten months of 2005 surpassed all previous year-to-date records in a number of major markets including Vancouver, Calgary, Edmonton, Winnipeg, Toronto and Montreal.
Seasonally adjusted MLS® residential new listings of 45,880 units in October 2005 were down by 1.3 per cent to compared to September. By contrast to the rise in major market new listings for the year to date, new listings remain below last year's year to date levels in Greater Vancouver, Calgary and Edmonton.
The average price for MLS® home sales climbed 9.8 per cent to $275,061 in October 2005 from the same month last year to set a new monthly major market record. Previous monthly records were set in Vancouver, Calgary, Regina, Kitchener-Waterloo and Montreal, and reached its highest level ever for the month of October in all other major markets.
"Mortgage rates inched higher in October, which may have pushed some homebuyers off the fence and into the market in order to take advantage of favourable pre-approved mortgage rates," said CREA's Chief Economist Gregory Klump.
"The Bank of Canada has made it clear that further interest rate increases should be expected," he said. "The housing market will become more balanced as expected price and interest rate increases cause sales to edge lower in 2006. Price gains next year are expected to become more modest as higher interest rates result in slightly softer sales activity and a more balanced market," he added.
CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.
MLS® is a co-operative marketing system used only by Canada's real estate Boards to ensure maximum exposure of properties listed for sale.
The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 78,000 REALTORS® working through 102 real estate Boards, 10 provincial Associations and one territorial Association. CREA’s primary mission is to represent members at the federal level, and to defend the public's right to own and enjoy property.
This report is published by the Communications Department of The Canadian Real Estate Association (CREA). Further information can be found at www.crea.ca.
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