CBJ - January 17 - According to statistics released by the Canadian Real Estate Association (CREA), national resale housing activity posted an increase from November to December 2011.

Sales activity recorded through the MLS Systems of Canadian real estate boards and associations rose 1.8 per cent from November to December 2011, marking the fourth consecutive monthly increase.

Activity rose in more than half of all local markets, including some of Canada’s most active markets, with monthly declines posted in most remaining markets.

Actual national sales activity came in 4.6 per cent above year-ago levels in December. It also stood above the five- and 10-year average for December sales.

A total of 456,749 homes traded hands via Canadian MLS Systems in 2011. This stands broadly in line with the average over the past 10 years and represents an increase of 2.2 per cent from annual levels reported in 2010.

“The momentum in sales activity provides clear evidence that low interest rates continue to draw homebuyers to the housing market,” said Gary Morse, President, CREA. “While buyers have become increasingly cautious, the hand off for sales activity going into the new year suggests that Canada’s housing market will continue to benefit from low interest rates in 2012 and [will] continue making a significant contribution to Canadian economic activity.

“Even so, prospects among housing markets and neighbourhoods differ, so buyers and sellers should talk to a local realtor to understand how trends are shaping up where they live.”

The number of newly listed homes rose three per cent on a month-over-month basis, reversing an equivalent monthly decline in November. New listings rose in almost 70 per cent of local markets, including some of Canada’s most active housing markets.

With sales and new listings having climbed in tandem, the national housing market remained in balanced territory in December. The national sales-to-new listings ratio, a measure of market balance, stood at 54.8 per cent in December, down slightly from 55.5 per cent in November.

Based on a sales-to-new listings ratio of between 40 to 60 per cent, just over half of local markets in Canada were balanced in December. This result is little changed from November.