Home sales across Canada increased by 0.8% from January to February, according to the Canadian Real Estate Association. Actual, not seasonally adjusted sales increased by 18.7% year over year.
“Two of Canada’s hottest housing markets look set to stay that way heading into the spring home buying season,” said the president of the Canadian Real Estate Association, Pauline Aunger. “Meanwhile, other major urban markets elsewhere in Canada are well balanced or have ample supply. 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 price of a home in Canada during the month of February was up 16.4% year over year to $503,057, however when the Greater Toronto Area and Greater Vancouver Area are removed from the equation the average is $355,235, and increase of 8.7%.
Gregory Klump, the chief economist for the Canadian Real Estate Association, said that, “The number of single family home sales above one million dollars is rising in Greater Vancouver and the GTA. Tightened mortgage regulations apply to homes selling above five hundred thousand dollars and below a million dollars. The tighter regulations combined with a short supply of single family homes will restrain transactions below one million dollars. If recent trends continue, home sales above one million dollars will account for a greater share of activity and will further fuel year-over-year average price increases in these markets. Meanwhile, price growth will remain more modest in other housing markets that don’t have an ongoing or developing supply shortage like the kind we’re seeing in the Lower Mainland of British Columbia or around the GTA.”