A predicted slowdown in the residential housing market has been proven out by January resale housing figures which show a drop in year-over-year unit sales in every part of the country except Saskatchewan and Newfoundland.
Home sales volumes dropped by an average of 6.3 per cent across Canada compared with January, 2007, at the same time a glut of new listings flooded the market, according to data released Friday by the Canadian Real Estate Association (CREA).
New listings on the Multiple Listing Service rose 10.7 per cent in January from December, the largest month-over-month increase in seven years, according to CREA. The 74,943 units up for sale in January set a new record for the month.
“The overall increase in new listings stemmed mainly from a jump in listings in Western Canada,” said Gregory Klump, chief economist at CREA, in a statement.
Lofty home prices continued to keep buyers in British Columbia and Alberta on the sidelines last month.