Canadian home sales in December decreased by 0.6 per cent compared to home sales in November, but year-over-year home sales were up by 10 per cent over December 2014.
“An increasingly short supply of listings in Vancouver and Toronto blunted the impact of changes to mortgage regulations announced in December that were aimed at cooling these housing markets,” said the president of the Canadian Real Estate Association, Pauline Aunger. “Buyers there had been expected to bring forward their purchase decisions before new regulations take effect in February 2016, but they faced a growing shortage of supply. Meanwhile, supply is ample in many other major urban markets, particularly those where buyers have become cautious amid economic uncertainty. 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.”
Greater Toronto and Greater Vancouver are still having a tremendous impact on the average Canadian home sales price. For example, if Greater Vancouver and Greater Toronto are excluded from the national average sale price, it increased by 5.4 per cent in December. If included, it increased by 12 per cent in December.
Gregory Klump, the Chief Economist for the Canadian Real Estate Association, said that, “December mirrored the main themes of 2015, with strong sales activity and price growth across much of British Columbia and Ontario offsetting declines in activity among oil producing regions. The recent decline and uncertain outlook for oil prices means that housing market prospects are unlikely to improve in the near term in regions where job market prospects are tied to oil production.”