CREA Economist Explains July's National Home Sales Activity

     Are you a fan of line graphs, bar charts, and market stats analysis?  If so you'll love the above YouTube video posted today by the Canadian Real Estate Association (CREA).  For the rest of you, Mr. Cathcart's breakdown of what's happening in the Canadian real estate market at the moment is still very much worth a look.  I've also listed some of the video's key points below.

  • The soft sales figures we're seeing right now can be attributed in part to accelerated home purchases earlier in the year.
  • Buyers rushed into the housing market before announced changes to mortgage regulations took effect, interest rates moved up, and the HST came into effect in British Columbia and Ontario.
  • In other words, the real estate market was "borrowing from the future" and much of the activity that normally would’ve happened late spring and through the summer actually took place in the first quarter of the year instead.
  • It’s also important to keep in mind that actual (not seasonally adjusted) year-over-year comparisons are going to be amplified by the fact that July 2009 was an ALL TIME RECORD month.  The numbers from July 2010 can’t help but pale in comparison to what we saw a year ago.
  • The good news is that new listings have been on a decline since they peaked in April.  This decline will help maintain the balance between supply and demand in the marketplace and temper home price volatility. 
  • Activity may remain at lower levels for some time but with the factors responsible for recent volatility now largely in the rear view mirror we do expect a more stable market to emerge, characterised by a flattening out of prices and demand coming back into line with economic fundamentals.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.