Resale Of Homes In Canada Up 41.5 Percent In October

November 17, 2009 4:41 p.m. EST

Ottawa, Ontario (AHN) - More than 42,00 homes were resold across Canada, leading to a 41.5 percent rise in resale home activities for October. As a result of this positive development which has been observed the past few months, the Canadian Real Estate Association hiked its forecast for 2009 and 2010.

CREA President Dale Ripplinger attributed the boost in home sales to low interest rates and improved consumer confidence which resulted to release of the pent-up demand that built in late 2008 and early 2009.

Since the numbers indicate this positive trend may continue, the CREA upped its sales forecast or 2009 by 6.6 percent to 460,000 houses. For 2010, CREA foresees sales rising by seven percent to 492,300 units.

The average home price also went up in October, going up by 20.7 percent from year-ago levels to $341,079.

By province, CREA predicts improved home sales this year in Alberta, Saskatchewan, Quebec and Prince Edward Island, but foresees no change in New Brunswick and Newfoundland and Labrador, and declining sales in Manitoba and Nova Scotia.

CREA Chief Economist Gregory Klump said in a statement, "Significant weakness in activity and average prices seen in late 2008 and earlier this year is not expected to repeat in 2010, so 2010 will look a lot better by comparison. The raised outlook for MLS (Multiple Listing Services) sales activity in 2010 still puts annual activity below the pre-recession peak recorded for 2007."