According to the Canadian Real Estate Association, resale housing activity across Canada decreased significantly between the months of July and August, 2012.
“While we always caution that housing market trends at the national level can and do run counter to trends in many local markets, the decline in activity in August was definitely the result of much of the country moving in the same direction,” said the President of the Canadian Real Estate Association, Wayne Moen, in a press release. “That said, many smaller and more affordable markets bucked the national trend. As always, all real estate is local, so buyers and sellers should speak to their REALTOR® to understand how the housing market is shaping up where they live.”
Home sales were down 5.8 per cent month-to-month, and the number of new listings also decreased by 1.7 per cent. The average home price across Canada increased by 0.3 per cent year-over-year from August 2011.
“August’s sales figures will no doubt provide comfort to policymakers, providing the first clear indication that the recent changes to mortgage regulations aimed at cooling the market are working as intended,” said Gregory Klump, the Chief Economist for the Canadian Real Estate Association. “With previous changes to mortgage regulations, demand rose between the time changes were announced and their implementation, and invariably fell in the months immediately after being implemented, before recovering to long-term levels. By contrast, recent changes to mortgage regulations were in force more quickly after being announced, so home buyers had far less time to react. As a result, demand didn’t pick up just before the changes took effect, while sales declined once they did.”