Canadian Resale Market continues to see gains

Seasonally adjusted home sales rose 4.5% in January 2011, compared to a relatively active December. This is the highest level of activity since April of 2010, where we witnessed one of the most active markets on record. 

“We anticipated the recent announcement of tighter mortgage regulations, which will come into effect this March, would pull forward sales activity into the first quarter of 2011, particularly in some of Canada’s more expensive housing markets,” said Gregory Klump, CREA’s Chief Economist. 

"It will take some time before the longer term impact of the latest mortgage  regulations on the housing market can be known,” said Georges Pahud, CREA’s President. “For that reason, further action shouldn’t be taken until the impact  can be measured. In the meantime, if last year can be used as any guide, sales activity may heat up further as we get closer to the date on which tighter mortgage regulations come into effect, especially in some of Canada’s pricier markets. That said, local housing market trends often diverge from national trends, so buyers and sellers should consult their local REALTOR® to understand how the market is shaping up where they live.”

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 100,000 REALTORS® working through more than 100 real estate Boards and Associations.