Home Sales in Canada Lose Steam

Resale housing in Canada's major markets experienced cooling in October, as the massive supply of homes for sale gave buyers more time to gauge the market.

Seasonally adjusted home sales activity via the MLS in Canada's major markets numbered 27,225 units in October 2006, down 3.7 % from a year earlier. Although sales reached their highest monthly level ever in Edmonton and Saskatoon, sales were down in Vancouver, Calgary, Ottawa and Montreal.

According to unadjusted MLS data, some 47,744 new residential listings came on the market in October, up 10 % from their year-ago level, which helped to tip market balance in favor of buyers.

New listings continue to trend higher, which is giving buyers more choice and taking some of the steam out of many local housing markets. A more balanced market gives buyers more negotiating power and time to make purchase decisions. That trend is forecast to continue, and result in smaller price increases in 2007.