July 15, 2011 / 2:22 PM / 9 years ago

UPDATE 2-Canada home resales up in June but Vancouver cools

 * Resales in June rise 2.6 pct from May to 37,578
 * Most markets rise but Toronto and Vancouver cool
 * National average price rises 8.7 pct to C$372,700
 (Adds details, commentary)
 TORONTO, July 15 (Reuters) - Sales of existing homes in
Canada rose 2.6 percent in June from May with increases in most
markets across the country except for high-priced Vancouver and
Toronto, the Canadian Real Estate Association (CREA) said on
 It said 37,578 homes were sold in June, up 10.8 percent
from the same month in 2010, when sales were in a mini-slump.
 Sales in Vancouver fell 1.7 percent in the month, while
Toronto dipped 0.4 percent. CREA said the national housing
market remains well balanced and said fundamentals point to
healthy home sales activity and prices going into the second
half of 2011.
 CREA chief economist Gregory Klump said that recent Bank of
Canada surveys showing upbeat business sentiment and hiring
intentions, and signs that the central bank is in no rush to
raise interest rates bode well for home sales activity, .
 "The Canadian housing sector remains on a solid footing,"
he said.
 Earlier this week, Toronto-Dominion Bank economists said
the market, which some feared had been overheating, is poised
to cool down with sales and prices expected to fall by 15.2
percent and 10.2 percent, respectively, over the next two
years. [ID:nN1E76C0YU]
 A slower pace of sales is already evident. In the second
quarter overall, national sales fell 4.7 percent from the first
quarter, partly because of a rush to buy in the first quarter
ahead of tougher mortgage rules implemented in the spring, CREA
said. Higher mortgage rates in April and May also pushed some
homebuyers to the sidelines in those two months.
 "Stricter mortgage rules and declining affordability appear
to be taking at least some momentum out of prices, a trend that
could continue if the Bank of Canada resumes its (monetary
policy) tightening campaign in the fall," said Robert Kavcic,
an economist at BMO Capital Markets.
 CREA said the national average price in June was up 8.7
percent from a year earlier at C$372,700 ($388,229), but that
the extent of the increase was skewed because of sales of
expensive homes in certain Vancouver neighborhoods.
 CREA said Vancouver's impact on the national price was
waning, but that price increases in other markets have kept the
national average price aloft.
 The number of new listings rose 1.8 percent in June from
  ($1=$0.96 Canadian)
 (Reporting by Ka Yan Ng; Editing by Peter Galloway)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below