OTTAWA - Canada's resale housing market remained relatively stable in August, but the national average price was up 7.7 per cent year over year at $349,916, according to the body that represents most Canadian real estate agents.
In its monthly report, the Canadian Real Estate Association says that while home sales held steady in August compared with July, they did post a big gain compared with a year ago, reflecting a slowdown last summer.
As a result, year-to-date sales have pulled ahead of 2010 levels for the first time this year, although they remain in line with the 10-year average.
Among major urban centres, Toronto and Ottawa posted a monthly increase in activity while Calgary, Montreal and Vancouver saw activity decline slightly.
Meanwhile, the association says the number of newly listed homes was little changed from July to August, meaning the resale market remains "firmly entrenched in balanced territory," CREA said.
In fact, CREA said there were more balanced local markets in August than at any other time on record.
The August report put to rest the fears of some who worried that last month's stock market volatility might have put a damper on housing sales.
"The housing market in Canada remained on a firm footing in August when compared to volatile financial markets," said CREA president Gary Morse.
"Through their actions, homebuyers are showing that they remain confident about the stability of the Canadian housing market and recognize that the continuation of low interest rates represents an excellent opportunity to buy their first home or trade up."
CREA chief economist Gregory Klump noted that economic and financial market turmoil outside Canada have been keeping interest rates lower.
"Those headwinds will likely persist until, and indeed after, fiscal quagmires in the U.S. and Europe are resolved," Klump said. "In the meantime, the Bank of Canada will have ample reason to delay raising interest rates further, which is supportive for the Canadian housing market."
Analysts have said the Canadian housing market has continued to grow despite a slowing national economy mainly because of low mortgage rates and strong job growth, especially in Western Canada.
CREA said actual sales -- meaning not seasonally adjusted -- came in 15.8 per cent above national levels last year.
"This was the largest year-over-year increase since last April, but largely reflects weakened activity one year ago."
A total of 324,030 homes have traded hands via the association's Multiple Listing Service system so this year.
"While this stands only marginally above levels in the first eight months of last year, it nevertheless marks the first time this year that year-to-date activity has pulled ahead of 2010 levels," it said.
The national sales to new listings ratio, a measure of market balance, stood at 51.6 per cent in August, unchanged compared with July.
That meant the resale housing inventory, a figure based on the number of months it would take to sell all those homes at current activity levels, stood at 6.2 months at the end of August on a national basis. That was little changed from 6.1 months at the end of July, a figure that has remained relatively stable since April.
