House Sales Soar in Canada

Climbing to $327,736 (£188,679), the Canadian average house price rose 11 per cent from the same quarter last year. The average house price continues to be skewed upward by a sustained increase in sales activity, including a sharp rebound in activity at the higher end of the price spectrum, in some of Canada’s priciest markets.

The Canadian average house price surpassed all previous monthly levels in September 2009, rising 13.6 per cent year-over-year to $331,602. July and August also posted new average price records for their respective months. A number of provinces set new average price records for the month of September, and Ontario posted the highest average price on record.

“Headline average price increases over the rest of the year are expected to prompt sellers to return to the market after having retreated to the sidelines late last year and earlier this year,” said Canadian Real Estate Association (CREA) Chief Economist Gregory Klump. “An increase in new listings will help keep a lid on price increases. Price increases over the rest of 2009 and early next year are likely to reflect declining average prices late last year and earlier this year.”

Canadian resale housing activity climbed to the highest level of any third quarter on record. Actual house sales totalled 135,182 units in the third quarter of 2009, according to statistics released by the CREA. This is the highest level of activity on record for the period from July to September. The number of transactions was up 18 per cent from the third quarter of last year, representing the biggest year-over-year increase since early 2002. Year-over-year activity increases in Toronto (28 per cent) and Vancouver (124 per cent) were the driving force behind the increase in actual Canadian sales activity in September.

“Momentum for sales activity remained strong throughout the third quarter,” said CREA President Dale Ripplinger. “Low interest rates, rebounding consumer confidence and an improving overall sense of economic security continue to draw homebuyers to the housing market.”

Property Prices In Canada
September 2009

Province	House Price $ (£)	12 Month % change
Nova Scotia	193,236 (£111,247)	2.1
Prince Edward Island	142,493 (£82,034)	9.9
New Brunswick	151,728 (£87,351)	6.5
Newfoundland & Labrador	203,903 (£117,388)	14.5
Quebec	229,837 (£132,318)	7.5
Ontario	326,698 (£188,082)	10.7
Manitoba	202,898 (£116,142)	9.0
Saskatchewan	232,876 (£116,809)	1.5
Alberta	346,560 (£194,731)	1.3
British Columbia	474,270 (£199,516)	15.1
Northwest Territories	318,753 (£185,508)	11.1

exchange rate £1 = $1.737