Helen Morris
Sun
OTTAWA — Canadian sales of existing homes were down 5.6 per cent to 38,365 units in February compared with a month earlier, the Canadian Real Estate Association said Tuesday.
“Overall, the report highlights the moderating pace of housing activity in Canada, which will bring the level of activity to more sustainable levels,” said Millan Mulraine, economics strategist at TD Securities. “At the same time, the Canadian housing sector remains in much better shape than its U.S. counterpart.”
The CREA report said more than half of the seasonally adjusted monthly decline was the result of fewer sales in Toronto.
“The buying activity peaked in Toronto in December, before Toronto‘s land-transfer tax went into effect, and before the record-breaking winter storm activity,” said CREA president Ann Bosley. “The culminating effect is that 53 per cent of the national month-to-month decline in sales in February is represented by the decline in sales in Toronto.”
The industry report said that, on average, 18 per cent of national monthly resale residential activity is generated in the Toronto area.
Month-over-month sales also eased in British Columbia and Alberta.
However, the report said resale housing activity for February was at the second highest monthly level ever in Saskatchewan and at its third highest level in Prince Edward Island.
Total sales for January and February in Saskatchewan and Newfoundland and Labrador have never been as high, CREA said.
The report said seasonally adjusted residential new listings fell 2.8 per cent in February compared with January’s record — but were still at the second highest level on record.
The national residential average price climbed 6.2 per cent year-over-year to $313,065 in February 2008. The increase was the smallest year-over-year price rise since November 2004.
“Market balance for resale housing is evolving differently among provinces,” said CREA chief economist Gregory Klump.
The average price climbed to its highest level on record in British Columbia and Saskatchewan.
© The Vancouver Sun 2008
