Canadian Real Estate Ends 2009 on Record High Notes

canadian real estate ends 2009 on record high notes

News Posted On: 18 January 2010

December is traditionally a chilly month for the housing market. However this year cold Arctic winds bringing record snowfalls to the Northern hemisphere failed to put the skids under surprisingly buoyant real estate markets. The big ‘C’s – China and Canada outperformed their peers.

Volumes and prices realised for existing Canadian homes posted huge gains in December according to a report issued on Friday. What a difference a year makes. 2009 came in on a wave of pessimism, with most predicting a continuation of the crash of 2008. For the first quarter it looked as though doomsayers were to be proven correct, but then came a remarkable and quickening recovery that saw prices hit record highs by the end of the year.

“Sales activity in 2009 came in like a lamb and went out like a lion,” said Canadian Real Estate Association (CREA) President Dale Ripplinger.

Prices also were up – to C$320,333 – a new record.

The Canadian Real Estate Association (CREA) reported that 27,722 homes were sold in December, 72 percent more than in December 2008.The national average price in December was up 19 percent year-over-year, and over 2009 climbed 5 percent.

Ontario, Quebec, Saskatchewan, New Brunswick, and Newfoundland and Labrador all showed record sales for December. In fact mean price records were set in every province except Alberta. The association noted that records were also set in most local areas.

Breaking another record was the number of seasonally adjusted national home sales. A total of 46,805 units sold in December brought the total for Q4 to 137,957 homes – the strongest seasonally adjusted fourth quarter ever recorded.

Record low interest rates and pent-up demand coupled with tight inventory mean the Canadian real estate market should continue to be strong in 2010. The Bank of Canada is expected to raise rates cautiously in 2010 to prevent this robust market morphing into a bubble.

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About Tariq Sultan
Dear Readers, I am a dedicated Toronto, Ontario based real estate professional who has been successfully meeting and exceeding the needs of his clients for past several years. I am actively involved in the insurance, financing, and mortgage industry. Real estate is not only my career – it is my passion. I strive to continuously provide my clients with exceptional service to ensure they are fully satisfied when it comes to their real estate needs. For any real estate related inquires contact me today, I will be happy to assist you. Best wishes, Tariq Sultan

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