Canadian existing home sales edge lower in January

TORONTO (Reuters) - Canadian existing home sales were slightly lower in January, as the market returned to more "balanced" conditions after last year's record setting pace, the Canadian Real Estate Association said on Friday.

Sales edged down 0.4 percent in January from December, to 28,911 units, said CREA, an industry trade organization representing over 90,000 realtors.

Meanwhile, new listings on CREA's multiple listings service surged 9.3 percent from the previous month to 51,716 units in January. That is the highest monthly level ever, and the largest month-over-month increase in seven years.

"The overall increase in new listings stemmed mainly from a jump in listings in some of western Canada's most active markets," said CREA Chief Economist Gregory Klump in a release.

"Price increases in those markets will be more modest compared to what we saw last year," he added.

The unadjusted residential average price rose 8.6 percent year-over-year to C$325,183 in January. That is the smallest year-over-year price increase since December 2006.

"The January MLS reports again show how the Canadian housing market is different than the market in the United States," said CREA President Ann Bosley.

"CREA had expected the growth in average price to slow in 2008, which is reflected in many markets. Sales levels are returning to what we would consider, on an historical basis, as more normal activity."

Cities that saw fewer sales were Toronto, Calgary, London and St. Thomas, Vancouver, St. Catharines, Halifax and Victoria.