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Prices cool in July, sales inch up
Canada's residential resale market inched higher in July from June, while prices dropped as sales slowed in the country's priciest markets, the Canadian Real Estate Association repoeted today. Existing home sales in major markets rose 0.1 percent to 27,889 units from the previous month, according to CREA.
On a year-over-year basis, resales were down 10.9 percent, with last July being the strongest on record. CREA said major market home sales in July 2008 were the third highest ever for the month.
Average house prices fell 3.6 percent to C$327,020 from the year before, mainly due to fewer sales compared with a year earlier in the four most expensive major markets Vancouver and Victoria, British Columbia; Calgary, Alberta; and Toronto.
Despite July's price drop, CREA said the market is not set for a U.S.-style housing slump.
"Based on what happened in the first half of the year, CREA's market analysis shows a record (high) national average residential... price by the end of 2008, but with a much more modest increase than was recorded in 2007," said Calvin Lindberg, CREA president.
Average home prices rose 10.8 percent last year, the biggest yearly increase in 18 years.
August 14, 2008 in Canadian Real Estate Market | Permalink
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Comments
I think this year the Canada real estate market is keeping a cool trend and there is a stability in the prices of the properties in July. Although the prices are a bit lower than what they were last year in this month, but it is still giving good time for the investors to get involved in the investment.
Posted by: Property in Brazil | Aug 20, 2008 6:33:50 AM
Lower home prices are good for everyone!!! Well, everyone except the commission seekers (realtors, brokers, etc), the sheep who bought the last 2-3 years at over-inflated prices, and i guess the government treasuries, as they might not collect as much in property taxes??
I love how we have the realtors on this blog saying that the bears are "pessimists" and "doom and gloomers"!! To me it is quite the opposite...I am optimistic that houses will return to a level where they are affordable to the average joe, using conventional mortgages.
Oh, and we should make sure that people can actually afford a home before we (ie, CMHC) guarantee mortgages...how bout back to 20% down and 25 year terms. If you can't make it work on those terms, houses are either too expensive or else the person in question is not ready for ownership.
Posted by: Toronto Bear the Optimist | Aug 18, 2008 2:13:42 PM
What about real estate industry in Canada now? Is it still good to invest into property? What about the prices? I heard the USA is getting worse.. Is it the same in Canada now? Please, give me a feed.
Posted by: Castles in Scotland | Aug 18, 2008 9:04:53 AM
Oh come on Bubbles. Don`t rant. Not all realtors are crooks. You know, some people actually work as realtors and might get offended. CREA does sometimes let out a few non senses, but calling everyone a crook just because you feel the need to criticize is not right. The RE market is going down, will be going down and will be down, unless people start taking positive interest in it, not just rant and do nothing about it. On other note. The market was sky high and it was bound to go down, that`s what educated people call an economical cycle. We`ll get out of it and everything will be fine.
Cheers
Jill
Posted by: Jill Stewart | Aug 17, 2008 5:53:07 AM
So even though "Average house prices fell 3.6%", CREA is forecast that housing prices will hit "a record (high) national average residential... price by the end of 2008"?????
In order to end the year with record high prices, we must magically shift from the price declines we've experienced in the first half of the year, to an environment of strong price increases.
So CREA, just what will the catalyst for this shift be?
* Higher interest rates?
* CMHC removing the 0-down, 40-year subprime mortgage?
* Higher unemployment?
* Record high housing inventory for sale?
* Home construction far in excess of household formation?
* Lower sales?
CREA Lies. Realtors are crooks.
Posted by: Popping Bubbles | Aug 16, 2008 7:46:48 PM
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