Canadian existing-home sales via the Multiple Listing Service rose to their fifth-highest seasonally adjusted monthly level on record in February, and average prices hit new highs, according to statistics released by The Canadian Real Estate Association.

According to CREA’s statistics, seasonally adjusted MLS home sales in February rose by two-tenths of a percentage point to 41,555 units compared to the previous month. A monthly increase in sales activity in Ontario and Quebec more than offset a decline in transactions in British Columbia. The number of MLS home sales in the first two months of 2006 are running 10.7 percent ahead of levels posted during the same period last year, CREA reported.

Sales activity reached its highest monthly level on record in Alberta, and set new records for the month of February on a national basis and in Manitoba, Ontario, New Brunswick, Nova Scotia, and Newfoundland.

Seasonally adjusted MLS residential new listings declined by one half of a percentage point to 64,382 units in February compared to January. The small decline in new listings and small increase in sales caused the national resale housing market to tighten slightly in February compared to the previous month.

The minor tightening of market conditions does not explain the large gains in national MLS residential average price, which shot up to $268,215 in February compared with $258,274 in January, CREA reported. The monthly average price increase of 3.8 percent was the second-largest gain posted in the last 15 years, and is attributed to large monthly price gains in British Columbia, Alberta, and Ontario. Average price was also up 12.3 percent compared to levels recorded in February 2005.

MLS residential average price reached its highest monthly level on record nationally, and in British Columbia, Alberta, Manitoba and Ontario. Average prices set new records for the month of February in all other provinces.

“The resale housing market remains tightest in Western Canada,” said CREA Chief Economist Gregory Klump. “A shortage of homes available for sale and the continuation of strong resale housing demand in Western Canada are resulting in substantial price increases there.”

“Although the national resale housing market has so far shown few signs of slowing, rising interest rates and home prices are expected to gradually slow resale housing market activity this year,” Klump added.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription