With summer coming to a close, it is a good time to reflect on the local resale market. August numbers continued the positive trend set in July with sales and average prices up, year over year. 2009 has thus far continued to surprise market watchers.

“We are seeing an upward revision of our housing market forecasts at the national level,” says Bonnie Wegerich, President of the Calgary Real Estate Board. “I think it is fair to say the recovery in the market has been a little brisker than first expected—and all signs indicate the rebound, all be it gradual, will have some longevity.”

The increase in demand for existing homes has been widespread across different housing types and price ranges. This suggests many categories of home buyers have chosen to make a long-term investment in housing, from first-time buyers to move-up buyers or buyers who are seeking a lifestyle change.

“We have heard more positive economic news lately. The improved housing market has played a key role,” explained Jason Mercer, TREB’s Senior Manager of Market Analysis. “Home sales have helped other sectors of the economy through home buyers’ spending on things like financial and legal services, moving, renovations and home furnishings.

Low mortgage rates, government incentives and realistic pricing on the part of sellers are contributing to healthy sales numbers—as is the recent boost in consumer confidence on news that the worst of the economic slowdown is over.

"After 12 months of significant volatility in the housing market, greater stability is expected through 2010," said Cameron Muir, BCREA (British Columbia Real Estate Association) Chief Economist. "Robust housing demand is a strong signal that the economy is coming out of the recession, with a recovery in the broader economy expected to develop over the next three quarters."

Below is a brief summary of sales activities in some areas across the country:

Ontario – August sales continue upward trend

Toronto, September 2, 2009 – In August 2009, Greater Toronto REALTORS® reported 8,035 sales, up 27% from August 2008. The average price for August transactions was $387,921—up by 6% compared to the same month last year.

Year-to-date sales, at 58,421 were up 2% compared to the first eight months of 2008. The average price at $385,978 was up by less than 0.05%.
 
Hamilton, September 3, 2009 – The Hamilton-Burlington area resale market reported a total of 1,133 units sold in August, indicating an increase of 16% over the same month last year. The total unit sales for the first eight months of 2009 are being reported at 4.5% lower for the same period last year, while new units listed are 8.6% lower for the year-to-date, according to statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB).

Residential properties sold during August totalled 1,090 which included 846 freehold properties and 244 condominiums. Commercial sales for August, including industrial, farm, vacant land and business, totalled 43 units.

The average price of freehold residential properties sold in the month of August was $313,356, an increase of 2.7% over August last year. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.

In the condominium market the average price of condominiums in August was $215,154, an increase of 1.3% over August 2008.

The total number of units listed for sale during August was 1,535, which is 2.8% fewer than were listed in the same period in 2008.

Ottawa, September 3, 2009 – August 2009 resale home sales solid
Members of the Ottawa Real Estate Board sold 1,216 residential properties in August through the Board’s Multiple Listing Service® system compared with 1,181 in August 2008. This is an increase of 3%.

Of those sales, 259 were in the condominium property class, while 957 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“August was another solid month for home sales in Ottawa. With strong sales and a listing inventory that is still very low, the capital remains in a seller’s market position,” said Board President Rick Snell. “Sales year-to-date are now up 2.6% over last year’s sales for the same period, which reflects consumer confidence in the local real estate market.”

The average sale price of residential properties, including condominiums, sold in August in the Ottawa area was $315,074, an increase of 12.3% over August 2008. The average sale price for a condominium-class property was $225,167, an increase of 5.1% over August 2008. The average sale price of a residential-class property was $339,406, an increase of 13% over August 2008.

British Columbia – August home sales continue at brisk pace

Vancouver, September 11, 2009 – The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 66% to 8,565 units in August compared to the same month last year. The average MLS® residential sales price in the province climbed 12% to $471,078 from $421,685 in August 2008.

"Homes sales continued at a rapid pace in August,” said Cameron Muir, BCREA Chief Economist. “Attractive home prices and low mortgage rates were key drivers in the market."

The number of active residential listings declined 20% over the past year, with August posting 26% fewer active listings than the peak in December 2008 (seasonally adjusted). “Home prices edged higher in many markets over the summer months as declining inventories created competition among homebuyers for the best properties."

Year-to-date, MLS® residential sales dollar volume declined 2% to $25 billion over the same period last year. A total of 54,945 units were sold in the first eight months of 2009, up 1% from 2008, while the average MLS® price declined 2% to $454,769.

Alberta – Calgary metro home prices edge upwards

Calgary, September 1, 2009 – Calgary metro home prices made the first year-over-year increase on a monthly basis since February 2008 according to figures released by the Calgary Real Estate Board (CREB®). Prices received an added boost from the sale of a $10.3 million home earlier this month.

“Calgary’s housing prices are edging upwards as consumer confidence improves and demand continues to grow,” says Bonnie Wegerich, President of the Calgary Real Estate Board. “The recent $10.3 million-sale has undoubtedly boosted the average price this month, but even without this sale the average price is higher than a year ago.”

The average price of a single family Calgary metro home in August 2009 was $454,130, showing an increase of 4% from July 2009, when the average price was $436,782, and showing an increase of 3% from August 2008, when the average price was $440,625. The average price of a Calgary metro condominium was $283,330 showing a 1% decrease from July 2009, when the average price was $285,032 and a decrease of 2% over last year, when the average price was $287,832.

The number of single family homes and condos sold in August in Calgary metro are also both up from the same time a year ago. Typically a slower month for sales, August saw 1,277 single family homes sold in Calgary metro. This is an increase of 9% from August 2008, when single family home sales were 1,170. The number of condominium sales for the month of August 2009 was 632, an increase of 28% from August 2008 when 495 condominiums changed hands.