The number of properties sold in Canada slipped further in January 2009. Monthly declines in house sales in British Columbia and Ontario pulled national statistics lower and offset monthly increases in Manitoba, and Newfoundland & Labrador.

Housing activity in January 2009 was down nationally by 40.9 per cent on a year-over-year basis according to figures from Canadian Real Estate Association (CREA). Only Prince Edward Island recorded an increase in houses sold, up two per cent compared to January 2008.

The supply of homes for sale remains high, but is trending lower nationally. The decline in new listings is trending lower in line with sales activity in many regions.

“There is no doubt the market is not as active as it was last year, but there are certainly buyers and sellers in the Canadian residential market,” says the President of the Canadian Real Estate Association, Calvin Lindberg of Vancouver. “In many markets, transactions have a tendency to take longer because of negotiations between the two. Realistic pricing is the key to the sale of residential property in this market. Conditions also vary from one neighbourhood to another, so buyers and sellers should know those details.”

CREA’s President is also confident federal budget initiatives for homebuyers will have an impact later in the year. “The increase in the Home Buyers’ Plan and the First-Time Home Buyers’ Tax Credit to cover closing costs are both important for first time home buyers, and they are an important factor in an active housing market.”

The Canadian average house price for in January 2009 was $273,607, down 11.3 per cent compared to January 2008. This average price continues to be skewed lower in large part by fewer sales in British Columbia, Alberta and Ontario, where homes are more expensive and demand has softened most. The average house sale price was up from year-ago levels in Saskatchewan, Manitoba, Prince Edward Island, and Newfoundland & Labrador.

“Weak sales activity in January follows the CREA forecast that Canadian sales activity will be well below the activity of last year,” says CREA Chief Economist Gregory Klump. “Affordability has improved and will be better during the spring home buying season in many markets compared to last year. However weak consumer confidence is likely to continue squeezing sales activity during the spring home buying season.”

House Prices In Canada
January 2009

12 Feb 2009