Q3 Sales Via MLS in Canada Dropped

Q3 sales via the Multiple Listing Service (MLS) in Canada dropped 6 % compared to Q3 2005 sales and fell 2.5 % compared to Q2 2006 sales.

Sales activity for the first 9 months of the year remained slightly ahead of levels recorded during the same period in 2005, and remains on a record pace.

Seasonally adjusted home sales activity via the Canada's major markets totaled 82,119 units in the Q3 of 2006, down 2.5 % compared to the Q2.

Transactions for the year to date in September were 0.7 % ahead of levels recorded for the same period last year. New sales records for the year-to-date in September were set in a number of major markets, including Calgary, Edmonton, Saskatoon, Winnipeg, Ottawa and Montreal.

The average price of homes jumped 10.1 % from Q3 2005 to Q3 2006, from $234,866 to $258,654.

The quarterly decline in sales combined with an increase in new listings caused the resale housing market to become more balanced than in any other quarter in the past 5.5 years.

Canada's housing market continues to head for a soft landing. The forecast indicates those trends will continue over the rest of the year and in 2007.