There are less MLS listings in this third quarter which indicates a stabilizing real estate market across the country, according to statistics released by the Canadian Real Estate Association (CREA). New MLS residential listings in Canada's major markets (Calgary, Vancouver, Montreal, Toronto, Edmonton..) numbered 146,637 units. This is 3.3% below the highest level on record, set in the previous quarter.

The trend stands out most in Edmonton and Calgary, where a sharp drop in new listings and rising sales activity has firmed up the resale housing market considerably since the beginning of the year, followed by declines in Vancouver and Montreal.

There are a number of facotrs that will have an impact going forward including the recent drop in the Bank of Canada rate, and the new rules reducing the maximum amortization to 35 years instead of 40. Those new mortgage rules went into effect October 15 which may be a good indication of third quarter trends.

"Price declines in some of Canada's more expensive housing markets will outweigh further price gains in other markets and continue pulling the national average price lower over the rest of the year and into 2009," said CREA® chief economist Gregory Klump.

Global economic turmoil will continue weighing on Canada's growth. As the Canadian housing market and pricing environment cools, the number of days on market for sales is likely to rise. Canadian home sellers are under no financial duress to sell, and several may decide to take their home off the market should it remain unsold when the listing expires.