A quick look at real estate markets across Canada: Vancouver The number of residential properties sold in Greater Vancouver dropped 42.9 per cent in September 2008 to 1,585 compared to the same month last year, while new listings rose 29 per cent to 6,142. Home prices also declined 1.6 per cent in September to $726,331 compared to the same month last year and about 5.8 per cent since May 2008. Vancouver realtor Shelly Smee said you can see how the market has changed in Vancouver by reading the real estate advertisements. "It's no longer 'hurry' and 'won't last' and the ad volumes have dropped off too," said Smee. "I think it's healthier for our marketplace." Calgary The average price of a single family house in Calgary in September was $444,048, a decrease of 5.7 per cent from a year ago. Condos are going for an average of $287,426, 10.6 per cent lower than September 2007. Listings for single-family homes were down 15.3 per cent, while condo listings were down 9.8 per cent. Sales were up 8.3 per cent for single-family homes from last year, but sales for condos were down 3.7 per cent. "You're seeing builders slow down, you're seeing a lot of condominiums downtown sitting on the market a lot longer," said Calgary realtor Thomas Keeper Toronto Resale homes prices in the Greater Toronto area fell for the first in more than a decade in September, down three per cent to $368,549. The City of Toronto saw prices fall six per cent to $393,647, compared to a year ago. Sales in the GTA fell six per cent to 6,424 homes changing hands in September compared to last year, compared to a drop of three per cent, to 6,622, in Toronto alone. Homes also sat on the market longer, for 36 days compared to 31 days a year ago. The Toronto Real Estate board blames the economy, as well as a new land transfer tax in the city, for the falloff in sales. Dianne Usher of Royal LePage said buyers are also more cautious. "There's more of a balance in the market," she said Montreal Sales in the Montreal area increased 13 per cent in September to 3,060, bucking the national trend. Property prices also five per cent to $230,000 for a single-family home. "The market is still solid in Montreal. We are a little bit outperforming the rest of the country," said Michel Beausejour, CEO for the Greater Montreal Real Estate Board. He expects 2008 will end with a three-per-cent drop in the number of transactions but prices will increase four to five per cent. Communities north of Montreal such as Mirabel are expected to thrive because of new job-creating projects including Bombardier's plans to assemble its new CSeries aircraft.

With a slowing economy and a tanking stock market, everyone’s looking for a little security -- in real estate? Toronto Life magazine has identified some if the city's most crash-resistant neighbourhoods. The most important consideration in buying crash-proof real estate, they say, is the overall vitality of a neighbourhood. Look for areas with thriving local businesses and well-maintained homes that are accessible by TTC. Districts with a diverse mix (detached, semis, towns, apartments and condos) at a variety of price points means you won’t run the risk of living in a bust area if, say, townhouses go out of fashion (ultra-high-end condos, which tend to attract foreign investment, are the exception). Flexibility is another key they identify; properties that are easily converted between single-family and rental units will ensure against a property value–lowering fire sale if your neighbour is desperate to sell and can’t hold out for a decent price. Regions populated by those who work in IT, advertising, design and media will fare better through a downturn than nabes with high-flying financiers or auto workers. Areas with artsy professionals often have a high proportion of cafés, galleries, boutiques and other value-maintaining amenities. Having a permanent attraction such as a museum, park or waterfront, and residents with fixed incomes (such as students and seniors) provides a steady support system for local businesses. Emerging areas with undervalued properties are money-makers when gentrification hits. Here is the list of crash-resistant neighbourhoods:

For more than 12 years, Toronto real estate prices soared as gentrification swept across the city. Now the party's over. The month of August marked the tipping point for Toronto real estate, and the rules of the game are now changing beneath everyone's feet. After more than twelve years of rising real-estate values in this city, prices dropped in August by one per cent, from an average of $381,681 to $377,990. The September figures, were even worse, with prices falling six per cent from of an average of $420,182 last year to $393,647. More telling, total home sales for August fell by 22 per cent, from 8,059 last year to 6,318 this year, and the total number of listings ballooned, from 19,145 to more than 25,000. The decline continued in September, though not as sharply. Home sales were down 11 per cent. This new market reality isn't just an economic shift, it's a cultural one as well, and everyone involved in real estate - from buyers and sellers to house-flippers and home stagers - will have to adjust. Real estate almost everywhere in Canada has enjoyed sustained rising prices, but in Toronto, market forces seemed to be let off the leash. As buyers flooded every neighbourhood of the city, sellers began pitting them against one another in "bid-night auctions," where buyers were kept in the dark as they named their prices. Soon many homes were drawing 10 bidders or more, and many couples were bidding on 10 homes before finally making a purchase. The bull market lasted so long, that many of the practices turned into orthodoxy. Among the commandments of Toronto real estate: Sellers should price their homes low to attract more bids. For every additional bidder, the price ballooned by $10,000. Buyers without pre-approved financing will be ignored. Any offer conditional upon a home inspection is an automatic loser. It was a market based upon pure desire -- and greed, one in which actual physical value had nothing to do with the purchase. The price of a home was based solely on how desperately buyers wanted a particular house, and what they were prepared to do to get it. But those days are over. "The balance of power has now shifted from sellers to buyers," says Sally Cook of Re/Max Hallmark. "Buyers have figured this out, but sellers are reluctant to acknowledge it. They are still pricing their homes aggressively, still trying to create bidding wars. They still think they dominate the market, but they don't." But as punishing as the new market will be be for sellers, it's agents that will have to make the biggest adjustment. "For the past several years it's been hard to tell the difference between a good agent and a bad one," says agent Sandra Pate of Postcard Homes. Because there was no shortage of bidders for every home, says Ms. Pate, working in real estate was like working at Tim Hortons, with agents serving the next person in line. "It's been basically an order-taking scenario," says the 27-year veteran of the business. "The market's been going up for 13 years. That means you can be an agent with 12 years of experience in Toronto and you've still never seen a down market. A lot of people have no idea what's coming." If lower prices and fewer sales become a long-term trend, it will come as no surprise if agents start leaving the profession in droves. In the last five years, the membership ranks of the Toronto Real Estate Board have swelled by 10,000 agents, to a total of 28,089. Given that many agents who work in the greater Toronto area aren't TREB members, the actual number is probably higher. All told, half of all agents in Ontario earn their living in the Greater Toronto Area, and it's doubtful the market can sustain any more. According to the Ontario Real Estate Association, since 2006 an average of 5,000 new agents per years have entered the profession - far beyond the more typical 1,400 agents per year back in 2000 and 2001. There are now 50,827 individual agents and brokers in Ontario. No one keeps track of the number of professional home stagers in the city, but it's a near-certainty that their ranks will thin as well. Home stagers Bonnie Dell and Marty MacPhail, who teach a course titled Home Staging 101 at Centennial College, say they've adjusted their class discussion to account for the new market. "We used to put the emphasis upon getting maximum value from your home," Mr. MacPhail says. "Now the emphasis is on selling it. The home staging itself hasn't changed, but the expectations have." Mr. MacPhail says that sellers used to be able to expect a return on their home-staging investment of about three or four to one. Today, home staging is marketed more defensively - as a means of ensuring your home doesn't end up in the growing bargain bin of unsold properties. Welcome to the new reality of Toronto real estate.

GTA resale housing price and sales soften in September Toronto Real Estate Board Members reported 6,424 sales of single family dwellings in September, down about six per cent from the 6,866 sales recorded during September of last year, Maureen O'Neill, the association's president, announced today. However, the 6,424 sales reported for September 2008 is down just three per cent from the 6,622 figure recorded in September 2006. To keep in perspective, September 2007's 6,866 sales was the second best figure ever recorded for that month. The overall transaction figure for September masks significant regional differences. Within the City of Toronto sales registered 2,546, down 11 per cent from the 2,854 figure recorded in September of 2007 but down five per cent from the 2,680 recorded during the same month in 2006. In the 905 suburbs, the 3,878 sales that went through TorontoMLS were down three per cent from last year's 4,012 sales, and down two per cent over the 2006 total of 3,942 sales. Overall, GTA prices declined three per cent from their year-ago levels to an average of $368,549 from the September 2007 figure of $380,132. As with sales, the GTA's regions fared quite differently on average price during the month. The average within The City of Toronto, at $393,647, fell six per cent from September 2007's $420,182 but rose six per cent from the $371,682 recorded in the same month of 2006. Meanwhile prices in the 905 districts, at $352,071, rose marginally from the $351,641 recorded in 2007, and was up five per cent from 2006 September figure of $333,818. Breaking down the total, 2,539 sales were reported in TREB’s 28 West districts and averaged $352,249; 1,067 sales were reported in the 14 Central districts and averaged $464,397; 1,220 sales were reported in the 23 North districts and averaged $407,424; and 1,598 sales were reported in TREB’s 21 East districts and averaged $300,772. NEIGHBOURHOOD CORNER East York In the first nine months of 2008, 1,017 sales have been recorded in East York (E03). These 1,017 sales averaged $370,622, up six per cent over last year’s $348,881. Detached homes averaged $437,724, up eight per cent over the $404,314 price recorded during the first nine months of 2007. Semis averaged $412,378, up six per cent from the $388, 595 recorded during the January to September 2007 period. See the full Toronto Real Estate Board report »

GTA Resale Housing Market Measured in September The Greater Toronto Area resale housing market continued at a measured pace through September, Toronto Real Estate Board President Maureen O'Neill announced today. With 6,424 homes changing hands last month, activity in the GTA declined six per cent compared to the 6,866 sales that took place in September 2007 and declined three per cent compared to the 6,622 transactions that were recorded two years ago. In the City of Toronto sales were less robust. The 2,546 transactions recorded last month declined 11 per cent from the 2,854 sales in September 2007 and declined five per cent from the 2,680 sales recorded in September 2006. Sales increased six per cent between September 2006 and September 2007. "We remain concerned about the Land Transfer Tax in the City of Toronto," said Ms. O'Neill. In the 905 Region, the 3,878 sales recorded last month were within three per cent of September 2007's 4,012 transactions, and within two per cent of September 2006's 3,942 sales. Sales in this region increased two per cent between September 2006 and September 2007. From a year-to-date perspective, the GTA resale housing market has declined 14 per cent from the 73,827 transactions recorded a year ago. To date, there have been 63,595 sales through the TorontoMLS system this year. In the City of Toronto year-to-date sales have declined 16 per cent from last year's figure of 30,059 to 25,257 transactions this year. In the 905 Region year-to-date sales have declined 12 per cent. So far this year there have been 38,338 sales in the 905 Region compared to 43,768 last year. Prices throughout the GTA however, have remained fairly stable. At $368,549, the average price of a GTA home in September has declined three per cent from $380,132 recorded a year ago. In the City of Toronto, the current average price of $393,647 declined six per cent from the September 2007 average of $420,182. Compared to the September 2006 average of $371,682 though, prices in Toronto for September 2008 have increased six per cent. In the 905 Region, the average price of $352,071, increased marginally from the $351,641 recorded in September 2007, and was up five per cent from 2006 September average of $333,818. "Although the market is not as robust as it was a year ago, homeowners are continuing to see strong returns on their investment," said Ms. O'Neill. "On average, Sellers are achieving 97 per cent of their asking price. With the average number of days on market increasing to 36 days from to 31 days a year ago, it is taking slightly longer for homeowners to achieve a sale. "Even with respect to sales activity, each month we continue to see a handful of neighbourhoods reporting increases compared to a year ago." In Scarborough East (E08) transactions increased 22 per cent compared to September 2007 based on strong sales of all housing types. Streetsville (W19) saw an 11 per cent sales increase due primarily to strong detached home sales. In Newmarket (N07) transactions increased 11 per cent compared to a year ago, driven mainly by strong condominium townhouse sales. "Given that these are trying times for the world economy, in context, the Greater Toronto Area resale housing market continues to fare quite well," said Ms. O'Neill. "From a long-term perspective, buying a home remains a sound financial decision."

Professor says U.S.-style bust in the cards Median sale prices for single-family homes in Calgary have plunged in the range of $45,000 to $66,000 in September from their peaks just over a year ago. Data from Calgary realtors Gary and Mike MacLean, of Re/Max Real Estate Central, also show the median sale price for a Calgary condominium has plummeted by $44,000 from its peak. The latest Calgary figures come as Robert Shiller, the University of Yale professor who predicted both the 1990s stock market boom and bust and the U.S. housing slump, said the Canadian housing market could face a similar housing bust to the United States, particularly in the more robust markets such as Toronto, Vancouver and Calgary. Canada may face housing bust: Shiller

Sale prices and transactions drop as inventories start to climb Canadian sellers are backing off listing properties now that sale prices and transactions have dropped at the same time inventories climbed. "The housing market is returning to a slower pace compared to the past couple of years," the Canadian Real Estate Association said yesterday. The average sale price in the housing market slid by 4.6 per cent year-over-year in August, the association said. Seasonally adjusted sales volume reached $11 billion in August, a drop of 5.5 per cent in July, it said. "Fewer sales in pricier markets in B.C. accounted for more than half the monthly decline in national MLS dollar volume." July was a record-breaking month when 80,147 new listings showed up on the Multiple Listing Service. But sellers cooled off in August, putting 74,993 units (calculated on a seasonally adjusted basis) up for sale. The number of new listings declined in all provinces except Sask-atchewan, the association said. Although Canada's resale market is stabilizing in most provinces, "the new listings remain most elevated relative to sales activity in B.C. and Saskatchewan," the national association said. The sales numbers were also down year-over-year in most local housing markets with declining in sales in cities such as Toronto, Vancouver and Calgary.