Housing activity picks up in August

Wednesday, September 15, 2010

Tavia Grant

National resale housing activity picked up in August, the first increase in nearly half a year, while monthly prices fell.
Home sales rose 4.1 per cent from the previous month on a seasonally-adjusted basis, the Canadian Real Estate Association said Wednesday. Resale prices fell in the month, to $324,928 in August from $330,351 in July, and are little changed from last year.
The report comes as several measures of the housing market, from home prices to housing starts and – prior to today’s report – resale activity, have slowed from a blistering start to the year. The market will likely continue to soften, the association said.
“Rising interest rates and a projected slowdown in job growth mean that the Canadian housing market is expected to continue to cool,” said Georges Pahud, CREA’s president.
The market appears to have picked up in August after a lull. Much of the resale gains stemmed from busier activity in Ontario and British Columbia. In more than half of all local markets, activity either rose or was stable. New listings rose 1.6 per cent in August from July, though they remain below their peak.
Average prices eased in Alberta and New Brunswick in August, but gained in every other province. “Increases are shrinking in Canada’s most active and priciest markets,” the report said.
Transactions have risen 2.2 per cent in the first eight months of this year compared to the same period last year.