AUGUST 15, 2012
I had to chuckle at the following quotes:
"The vast majority of markets had sales-to-new listings ratios consistent with balance between supply and demand, including Toronto and Vancouver" -RBC
"Based on a sales-to-new listings ratio of between 40 to 60 per cent, two thirds of all local housing markets were in balanced market territory in July" -CREA
The precise definition of a "balanced market" is certainly up for debate, but I'll suggest it's not when the sales-to-new listings ratio is near or at decade lows in 4 of the largest Canadian cities, whose metro areas account for just under 40% of the total Canadian population.
Readers may also be interested in this chart showing year over year change in the average house price in Canada:
Admittedly the bulk of the weakness is in BC where prices are off a mere 12% year/year, but should weakness persist in the sales-to-new listings ratio going forward, it's hard to see prices holding up in other key markets.