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MLS Residential Sales Increase during Fourth Quarter
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MLS sales increased 7.5 percent to 1,293 compared to 2008's fourth quarter sales of 1,203. October, November and December MLS sales were 473, 421 and 399, respectively. Fourth quarter average MLS residential house price climbed 10 percent to $212,992 compared to $193,529 during the fourth quarter of 2008, the only consistent price growth market in Canada since 2008. |
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Sellers Market Condition
There were 1,257 new residential listings during the fourth quarter compared to 1,463 during the same period in 2008. Active listings or inventory averaged 1,542 from October to December versus a similar 1,528 during Q4 of 2008. Sales to active listings ratio hit 34% in December and averaged 29% during Q4 versus 26% in Q4 of 2008. Sellars Market Keeps Listings Low Steady demand for housing caused active residential listings to remain low during the fourth quarter. Active listings for October, November, and December were 1,790, 1,643 and 1,192 respectively with new listings of 601, 416 and 240 respectively. Steady demand paired with 7.5% more sales and 14% fewer new listings resulted in sellers market conditions. |
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Canadian mortgage rates are expected to remain historically low during the first half of 2010 and increase gradually during the second half, as bond yields start to increase. For 2010, the posted 5-year mortgage rate is expected to be in the 5.49% to 6.0% range. The record low bank rate currently sits at 0.25% and the prime lending rate is 2.25% at major Canadian banks and 5-year fixed mortgage rates at 5.49%. |
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