Canadian Funding Corp. Reviews CMHC Statistics

According to data released today by the Canadian Real Estate Association, the number of homes sold in Canada in May, on a seasonally adjusted basis, was up for a fourth consecutive month. Moreover, it was 1.3% higher than in last September, that is, the pre-recession level. Today’s Hot Chart (left panel) shows that the turnaround in sales has been accompanied by a drop in new listings. As a result, the ratio of new listings to sales was the lowest in seventeen
months and well within the range where the market is considered balanced. This development reduces the risk of persisting home price deflation and of a corresponding deterioration in household balance sheet. On a regional basis, we note that sales in BC and Quebec more than recovered the ground lost since September. Even Ontario has
shown a significant pick-up in activity in recent months (see right panel).

NBF Financial Group…

http://www.news-to-use.com/2009/06/canada-existing-home-sales-back-to-pre.html

This report brought by Moishe Alexander, CFC CEO

According to the Canadian Funding Corporation, the Starts and Completions Survey is carried out monthly in urban areas with populations in excess of 50,000 as defined by the 2006 Census. In urban areas with populations of 10,000 to 49,999, all Starts are enumerated in the last month of each quarter (i.e. four times a year, in March, June, September and December). In these centres with quarterly enumeration, Completion activity is modelled based on historical patterns. Monthly Starts and Completion activity in these quarterly locations are statistically estimated at a provincial level for single and multi categories. Centres with populations below 10,000 are enumerated on a sample basis, also in the last month of each quarter (i.e. in March, June, September and December).

The Market Absorption Survey is carried out in conjunction with the Starts and Completions Survey in urban areas with populations in excess of 50,000. When a structure is recorded as completed, a report is also made as to whether or not a unit has been sold or rented. The dwellings are then enumerated each month until such time as absorption occurs.