MLS listings fall in third quarter

Fewer homes were listed for sale on the Canadian Real Estate Association's multiple listing service in the third quarter, as the market cooled in Alberta and British Columbia, according to figures released Thursday.

Third-quarter MLS listings fell to 230,107 on a seasonally adjusted basis, a 3.1 per cent decline from the record-setting level in the previous quarter.

The value of MLS sales in the same period was $34 billion — a drop of 5.4 per cent from second quarter.

Calvin Lindberg, CREA president, noted the easing Canadian market differs from the U.S.

"U.S. prices were driven up by speculative investment and relaxed lending standards. Canadian resale housing prices climbed due to strong job growth and low interest rates, especially in Alberta and B.C.," Lindberg said in a statement.

"We did not have the relaxed lending standards offered to homebuyers in the U.S."

CREA Chief Economist Gregory Klump said Canadian consumers should not expect to see a major price correction as in the U.S., suggesting that Canadians are not under particular duress to sell their homes.

"Lower interest rates and a Canada-U.S. currency exchange rate will help support Canadian economic growth," he said. However, "whether Canada avoids a technical recession, economic growth is likely to stall, so that it feels like one."

"Many may take their home off the market if it remains unsold when the listing expires," he said. "The resulting decline in listings limits the extent to which the resale housing market balance will realign."