Canadian house sales drop again in January, agents report

The number of properties sold through agents who use the MLS listing system fell a seasonally adjusted 3.1 per cent in January from December, the Canadian Real Estate Association (CREA) reported Friday.

The seasonally adjusted residential sales figure fell to 26,376 units. That's down 37.3 per cent from January 2008.

Major market year-over-year price changes MarketPer cent change Vancouver -8.8 Calgary -11.4 Regina +7.6 Winnipeg +5.1 Toronto -8.2 Ottawa +1.8

Montreal

+2.2 Saint John -13.9 Halifax-Dartmouth +11.1 N.L. +20.1Source: CREA

Ontario and British Columbia were especially weak, while sales rose in Manitoba and Newfoundland and Labrador.

Prices also fell, with the seasonally adjusted national average dropping 11.3 per cent from January 2008.

"This national average price continues to be skewed lower in large part by fewer sales in British Columbia, Alberta and Ontario, where homes are more expensive and demand has softened most," CREA said in a news release.

The actual average price in major markets fell 10.3 per cent to $300,930.

The actual unadjusted number of new listings was the largest year-over-year decline on record, falling 14.2 per cent in January 2009 compared to January 2008. But the lack of sellers is a positive, CREA said.

"The decline in supply to meet lower demand is expected to help stabilize the resale housing market balance and put a floor under prices."

However, closing a deal is taking longer because buyers and sellers are negotiating more, said CREA president Calvin Lindberg.

There were wide variations in actual year-over-year price changes in major markets. The average price in St. Catharines, Ont., fell more than 22 per cent to $206,233, while in Newfoundland and Labrador, it surged 18.1 per cent to $178,853.

There were big drops in Trois-Rivières, Que., Saint John, N.B., Victoria and Calgary. Prices rose more than 10 per cent in Halifax-Dartmouth and Saskatoon.

MLS is a co-operative marketing system used only by Canada’s real estate boards. CREA represents more than 98,000 Realtors.