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."
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%.
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.
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.