Canada’s resale housing activity is hotter than ever, according to the Canadian Real Estate Association (CREA), who recently issued its July 2007 sales activity and average price statistics.
Year-to-date transactions set new records in almost all major markets in July as MLS® home sales via Board and Association MLS® systems numbered 235,980 units in Canada’s major markets during the first seven months of 2007, up 10.3 per cent from the same period in 2006.
The major market MLS® residential average price rose 13.1 per cent year-over-year to $332,442 in July. This represents the largest year-over-year growth in average price since April 2004. Average price reached the highest monthly level on record in Calgary, Regina, Québec City, and St. John’s.
“As this report shows, Canada’s resale housing market has shrugged off the subprime problems that have been affecting the housing market in the United States, and a number of investment funds,” said Ann Bosley, President of The Canadian Real Estate Association. “Canadian lenders have launched some alternative mortgage options in the past year, but they appear to be more conservative and are unlikely to overdo any subprime lending, which has been the problem affecting the U.S. housing and borrowing markets.”
The resale housing market in many cities is more balanced than earlier in the year, the CREA President notes, and overall fundamentals are still a positive influence. “Canada’s economy is strong, and the employment statistics released last week were very strong,” added Bosley. “Canadian lenders and consumers are learning from the U.S. experience, and it has not had any major impact on consumer confidence in the housing market.”
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 90,000 REALTORS® working though more than 100 real estate Boards and Associations. CREA’s primary mission is to represent members at the federal level, and to defend the public’s right to own and enjoy property.