Resale housing market tops $100 billion in 2007

[Joe Crawford]

Well, it's official. Last year was the best year ever in Canadian
real estate! Resale housing activity via the MLS(R), as well as new
listings, average price and dollar volume in Canada's major markets
all reached their highest annual levels ever in 2007, as reported by
statistics just released by The Canadian Real Estate Association
(CREA).

According to CREA, annual sales activity in Canada's major markets
totaled 362,934 units in 2007, up 7.9% from 2006 levels. With BC and
Alberta sales now cooling to past peak, the record-breaking
performances for 2007 were seen in points East. The Prairies, Ontario
and the Maritimes all saw record numbers of resale homes traded.
Sales set new annual records in a number of major markets including
Regina, Saskatoon, Winnipeg, Toronto, London & St. Thomas, Hamilton-
Burlington & District, Kitchener-Waterloo, Ottawa, Saint John,
Halifax, and Newfoundland and Labrador.

Dispelling any concerns that Canadian market might suffer as a result
of the struggling U.S. market, the total dollar value of MLS(R)
residential home sales in Canada's major markets topped the $100
billion mark for the first time ever in 2007. MLS(R) dollar volume
totaled $118.3 billion in 2007, a remarkable 19.6% increase over the
previous year, which was also a record-breaking total just a year
ago. New annual records were reached in almost all major markets in
2007.

Meanwhile, more and more sellers were encouraged by record high prices
to list their homes for sale. MLS (R) residential new listings in major
markets broke all previous annual records in 2007, posting an annual
increase of 4.6% and reaching 587,607 units. New annual records for
new listings were set in Victoria, Calgary, Edmonton, and Newfoundland
and Labrador.

Despite the fact that so many resale homes came onto the market, sales
rose at an even higher level than new listings in 2007. As a result,
the overall MLS(R) market tightened in 2007 compared to the previous
year. With negotiations favouring the seller more throughout 2007, the
MLS(R) residential average price posted a 10.8% year-over-year gain in
2007 - the largest annual increase in 18 years. In the fourth quarter
of 2007, the major market MLS(R) residential average price rose 11.6%
year-over-year to $333,105 - a new record. The year ended with a
monthly gain for average price of 13.1% year-over-year in December -
the largest gain in more than three years.

Of course, these statistics just represent national trends and overall
major market performance. However, real estate remains a locally
transacted business, and sales volume, listing inventory and average
price can vary dramatically, even within the same neighbourhood. Your
local Coldwell Banker (R) sales professional can give you specific
information and help you to make an informed choice.