Seasonally adjusted national home sales activity via the Multiple Listing Service (MLS) Systems of Canadian real estate Boards climbed 4.8 per cent in November 2010. Although this is well short of record level activity for the month of November posted a year ago, seasonally adjusted sales now stand 19.5 per cent above levels recorded in July 2010, when it reached this year’s low point.
The dip, the rise and now– the calm: November home sales indicate a return to normalcy
December 15, 2010
Remember the summer? I know, it’s hard when it feels like minus 22 outside. The sun was beating down, you were sweating when you went outside…and everyone was saying that the slower momentum of the housing market was the first sign of a housing bubble.
But now it’s December, and the November housing market stats are in. And they’re looking good. In fact, sales of existing homes rose for the fourth straight month.
According to CREA:
So, as I said, the summer was a time of unsure reticence for the housing market. November numbers didn’t reach match the incredible heights of November 2009. In fact, they dropped 9.3 per cent. But don’t despair– for me that’s reassuring rather than troubling.
If they had, I’d be scared that we were in a housing bubble. After all, November 2009 was certainly an aberration rather than a standard.
Check out the graph from CREA:
One indicator that the housing market certainly isn’t in trouble is the fact that despite lower sales figures, the average price rose 2 per cent from November 2009 to $344,268.
So prices are stabilizing and the market is fairly well balanced. That means that the housing market is basically returning to normal. The recession caused housing prices to drop and then the crazy rebound of the housing market made everyone fear a bubble. It seems like everything’s calming down now. And I, for one, welcome the calm.