Existing-home sales through Canada’s Multiple Listing Service set a monthly record in August, according to statistics released by The Canadian Real Estate Association. This was the second time that national sales have shattered all previous monthly records in 2005.
A seasonally adjusted total of 43,444 homes traded hands via MLS in August, up 5.4 percent compared to the previous month and up 3.1 percent from the previous national record for MLS sales for a single month – which was set in June 2005. Sales broke all previous monthly records in New Brunswick, and reached their highest level on record for the month of August in British Columbia, Alberta, Manitoba, Ontario, Quebec, Nova Scotia, and Newfoundland and Labrador.
The national MLS residential average price rose 11.9 percent year-over-year to $246,222 in August – its strongest year-over-year increase in 2005. Average residential price reached its highest monthly level on record in British Columbia and Prince Edward Island, and recorded its highest level ever for the month of August on a national basis and in all other provinces.
“August 2005 was the best month on record for national sales of existing homes via the Multiple Listing Service, and sales remain on track to set a new national record in 2005,” said CREA Chief Economist Gregory Klump. “Canada’s resale housing market continues to be strong and is showing few signs of slowing down so far.”
“According to recent research from Clayton Research Associates commissioned by CREA, resale home purchases so far this year have generated also $8 billion in spin-off spending. With interest rates expected to move only slightly higher next year, housing activity will continue to make an important contribution to our national economy,” added Klump.
Seasonally adjusted new residential listings on MLS rose by 4.1 percent to 65,822 units in August compared to the previous month – their highest monthly level since October 1990. New listings shattered all previous monthly records in New Brunswick, and set new records for the month of August on a national basis, and in Ontario and Prince Edward Island. A bigger monthly increase in sales activity than for new listings caused the national market for existing homes to tighten slightly in August.
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