Actual national sales activity was 19.7% lower in June 2010 compared to last year. The number of newly listed homes declined by 6.8% from the previous month (decline in May was 4.8%). Such tendency can help maintain the balance between supply and demand. The national average price of homes sold via MLS® increased by 4.9% on a year-over-year basis in June to $342,662. At the end of June 2010 it would take 5.7 months in order to sell current inventories at the current rate of sales activity. This is up from 4.2 months one year ago, when the economic recovery just began. “The housing market becomes more challenging for sellers,” said Georges Pahud, CREA President. “Buyers don’t in a rush to buy any more”. “National home sales activity decreased because of fewer and more cautious first-time home buyers,” – said Gregory Klump, the Chief Economist. “The housing affordability and home sales activity will probably continue to erode over the second half of 2010”.
June Home Sales Going Down
According to
CREA Statistics, the number of newly listed homes and sales activity declined
in June 2010.
In June home
sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian
real estate Boards declined by 8.2%. Biggest drop was in Toronto and Calgary, 70% of local markets were also down.
New mortgage
rules and expected interest rate hikes cooled sales activity in the second
quarter of 2010. As a result, the decline reached the level of 13.3% from
near-record levels in the first quarter.
Actual
national sales activity was 19.7% lower in June 2010 compared to last year.
The number of
newly listed homes declined by 6.8% from the previous month (decline in May was
4.8%). Such tendency can help maintain the balance between supply and demand.
The national
average price of homes sold via MLS® increased by 4.9% on a year-over-year
basis in June to $342,662.
At the end of
June 2010 it would take 5.7 months in order to sell current inventories at the
current rate of sales activity. This is up from 4.2 months one year ago, when
the economic recovery just began.
“The housing
market becomes more challenging for sellers,” said Georges Pahud, CREA
President. “Buyers don’t in a rush to buy any more”.
“National home
sales activity decreased because of fewer and more cautious first-time home
buyers,” – said Gregory Klump, the Chief Economist. “The housing affordability
and home sales activity will probably continue to erode over the second half of 2010”.
