Home sales in Canada increased by 1.8 per cent from October of 2015 to November of 2015, according to the latest news from the Canadian Real Estate Association. Actual activity was up by almost 11 per cent in November year-over-year.
“Recently announced changes to mortgage regulations will likely boost sales activity in the short term, as buyers jump off the fence to beat the changes before they take effect next year,” said the president of the Canadian Real Estate Association, Pauline Aunger. “Even so, some housing markets stand to be affected by the changes more than others. All real estate is local, and Realtors remain your best source for information about sales and listings where you live or might like to in the future.”
The average sales price for a home in Canada increased by 10.2 per cent year-over-year, however if Greater Toronto and Greater Vancouver are removed from consideration the average price only increased by 3.4 per cent.
“Changes to mortgage regulations taking effect in mid-February next year appear aimed at cooling the Greater Vancouver and Greater Toronto housing markets,” said the chief economist for the Canadian Real Estate Association, Gregory Klump. “Minimum down payments will be going up for homes that sell for more than half a million dollars, so larger more expensive housing markets will be affected most. Unfortunately, the regulatory changes will also cause unintended collateral damage to housing markets beyond Toronto and Vancouver, including places that are facing economic headwinds from the collapse in oil prices.”