"Sales activity in the first half of 2008 was down compared to the same period of 2007, which was a record-setting year. Transactions declined by 13.3% year over year to 169,265 units in the first half of 2008," a release by the Canadian Real Estate Association (CREA) said Tuesday.

At the same time, new listings climbed to record highs as new MLS residential listings in Canada's major markets totalled 332,958 units in the first six months of 2008, up 8.1% from the previous record set in the same period last year. For the third time in as many months, seasonally monthly adjusted new MLS residential listings topped 50,000 units in June 2008 at 50,508, off 0.7% from the previous month's 50,863.

The unadjusted June average price of $341,096 was 0.4% lower than the average price in June 2007. CREA said the slight decline in average price "reflects the impact the surge in average price in Calgary and Edmonton had last year. The average price in these markets retreated after rising dramatically last year, but has stabilized since March 2008 in line with a balanced market."

New monthly records for MLS residential average prices were set in a number of major markets in June, including Saskatoon, Kitchener-Waterloo, Thunder Bay, Ottawa, Gatineau, Montreal, Trois-Rivi?res, Saguenay, Saint John, and St. John's, CREA reported.

Seasonally adjusted dollar volumes were down 0.2% month-over-month from May to $8.66 billion and unadjusted dollar volumes in June 2008 were down 15.4% from the same period last year. Unit sales in the month were up 0.5% over May using seasonally adjusted figures totalling 25,910. On an annual basis, unit sales were 15% lower in June.

The first six months of 2008 have seen a similar 10.5% drop in dollar volumes. However, prices in the first half of 2008 hit a new record, up 3.2% over the same period last year to $340,390.

CREA reported new listings reached record or near-record levels in Toronto, Vancouver, Ottawa, Regina, and Saskatoon, offsetting a decline in new listings in Edmonton and Calgary, which were retreating from peaks in March.

"Over the past six months, easing sales activity and a surge in new listings caused the resale housing market to become considerably more balanced in many major housing markets. Vancouver, Regina, and Saskatoon were the most balanced major markets in June," the CREA report said.

"The Canadian real estate market, while cooling, is still much different than the U.S. market with its record low number of foreclosures or defaults" said CREA president Calvin Lindberg in a press release. In the U.S., home prices dropped by 14.1% in the first quarter of the year, according to the S&P/Case-Shiller national home price index, the CREA report noted.

"The resale housing market is more balanced than it was last year in all major urban centres," said CREA chief economist Gregory Klump. "The frenzied pace for sales activity last year has faded, with buyers now better able to shop around before making an offer. Price increases are expected to be modest in the second half of 2008, as sales continue easing and new listings remain high."

Source: Forex News