Canadian home sales ease in September

But across Canada the average sale price increased by 6.1 per cent to $433,649.

Canadian home sales in September were down from August as a few of the country’s hottest real estate markets saw sales cool, but prices continued to show strength.

Actual sales for September, not seasonally adjusted, edged up 0.7 percent from a year earlier.

Diana Petramala, economist with TD Economics, said September’s housing markets stats for Canada are consistent with a continued hot housing market – it just doesn’t appear to be getting any hotter.

Except where otherwise indicated, CREA data is seasonally adjusted.

“Sales are off the peak reached earlier this year, but are still running strong, particularly in British Columbia and Ontario”, CREA president Pauline Aunger said.

“It doesn’t happen in many markets in Western Canada, except Vancouver, but Calgary tends to have that sort of, you know, within 24 hours you can expect a decrease”, he said. Prices in Saskatoon and Ottawa were also about the same level as they were a year ago.

The national association of realtors said it was the second highest sales activity on record for the month and just 0.3 per cent, or 130 transactions, below the record set in September 2009.

The report, released on Thursday, said the decline in Calgary was compared to a record set a year ago.

BMO senior economist Sal Guatieri said the Canadian housing market is cooling somewhat.

The number of newly listed homes slipped 2.1 per cent from August to September, while the national sales-to-new listings ratio was 56.8 per cent in September.

“Looking forward, a favourable economic backdrop and balanced market conditions will continue to support a moderate pace of housing activity in most markets across Canada”.

CREA’s MLS Home Price Index rose 6.9% on a year-over-year basis in September.

Two-storey single family homes posted the biggest year-over-year price gains at 9.07%, followed by one-storey single family homes at 6.48%, townhouse/row units at 4.4% and apartments at 4.22%. If these two markets are excluded from calculations, the average is a more modest $334,705 and the year-over-year gain is reduced to 2.9 per cent.

Prices are likely to come down by Friday morning thanks to wholesale gasoline dropping about six cents a litre.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differential between geographic areas.