Home sales across Canada dropped by 0.9 per cent from the month of May to June, however actual (not seasonally adjusted) sales were up by 5.2 per cent year-over-year in June.
“While national sales activity remains strong, there are still significant differences in housing market trends across Canada,” said Cliff Iverson, the president of the Canadian Real Estate Association. “While home sales activity and price growth are running strong in BC and Ontario, they remain subdued in other markets where homebuyers are cautious and uncertain about the outlook for their local economy. 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 for a home in Canada increased by 11.2 per cent nationally year-over-year in June, however if Greater Vancouver and Greater Toronto are excluded that number drops to 8.4 per cent.
Gregory Klump, the chief economist for the Canadian Real Estate Association, said that, “June sales extend trends observed the previous month. As was the case in May, the monthly decline in national sales activity was led by the Lower Mainland of British Columbia and markets in or around the GTA. In keeping with the law of supply and demand, exceptionally low inventory combined with high demand continues to translate into strong price growth in these housing markets, where year-over-year price gains have been running in double-digit territory since late last year.”
After a record month in April, home sales across Canada have decreased in the month of May, dropping 2.8 per cent month-to-month, according to the Canadian Real Estate Association.
“National sales activity is still strong, even after coming off the record levels of the past couple of months,” said the president of the Canadian Real Estate Association, Cliff Iverson. “But, there are housing markets where sales continue to reflect a cautious mood among homebuyers and uncertainty about the local economy. 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 for a home in Canada reached $509,460 in May, which is an increase of 13.2 per cent year over year. However, if Vancouver and Toronto are removed, the average price increased by only 9.1 per cent to $375,532.
Gregory Klump, the chief economist for the Canadian Real Estate Association, said that, “Many of the housing markets in BC and Ontario that led the monthly decline in national sales are also places where months of inventory have fallen to all time lows. This suggests a lack of supply may be starting to rein in sales amid a continuation of strong housing demand.”
The Canadian Real Estate Association recently updated its resale home sales activity forecast for 2016 and 2017.
According to the Canadian Real Estate Association, “Canadian resale housing market trends that defined 2015 have intensified. National sales activity and average prices reached new heights in the first half of 2016 amid a growing supply shortage of single family homes in British Columbia and Ontario, particularly in B.C.’s Lower Mainland as well as in and around the Greater Toronto Area (GTA).”
Sales activity across the country is expected to increase to a new annual record of 523,400 units, and increase of 6.1 per cent. The average sale price for a home in Canada has been adjusted to $490,700 this year, which is an increase of 10.8 per cent.
The Canadian Real Estate Association also says that Ontario’s average home price should increase roughly in line with the national average, while British Columbia will be the only province where sales increase at a rate above the national average.
During the month of April 2016, home sales across Canada increased by 3.1 per cent over March and set a new record for monthly sales according to the Canadian Real Estate Association.
“National home sales set new monthly records over the past two months, even as activity in Greater Vancouver and the GTA appears to have topped out,” said the president of the Canadian Real Estate Association, Cliff Iverson. “With almost three-quarters of all local markets posting sales gains in April, there are plenty of other places where sales are climbing as we head into the busiest time of the year for homebuyers. As always, your local Realtor remains your best source for information about sales and listings where you live or might like to in the future.”
The average selling price for a home in Canada increased by 13.1 per cent in April, however when the Greater Vancouver and Greater Toronto areas are excluded the average price increased by 8.7 per cent over a year ago.
Gregory Klump, the chief economist for the Canadian Real Estate Association, said that, “Supply shortages and tight housing market conditions have become self-reinforcing in the GTA. The Greater Vancouver Area appears to be heading in that direction too. While significant home price gains may entice some homeowners in these markets to list their home for sale, the issue for many is that the decision to move means they would also be looking to buy while competition for scarce listings Is fierce. As a result, many homeowners are deciding to stay put and continue accumulating capital gains. That’s keeping listings off the markets at a time when they are already in short supply.”
Royal LePage has released its House Price Survey, depicting strong price increases during the first quarter of 2016 compared to the same time last year. Leading in price growth are the Greater Toronto Area and Greater Vancouver Area, while the Greater Montreal Area is showing promising signs of renewal.
“A glance at our national house price composite points to a very strong Canadian real estate market, yet the findings contain extreme regional disparities of the kind we haven’t seen in over a decade,” said the president and CEO of Royal LePage, Phil Soper. “Like an economic triumvirate, the impact of rock-bottom interest rates, the low Canadian dollar and rapidly expanding U.S. workforce are stimulating economic growth and housing demand in our largest metropolitan areas. Conversely in cities like Calgary, the ongoing drags in depressed energy prices and worrisome employment trends have taken a material bite out of sales volumes. As a lagging indicator, home prices in Alberta and Newfoundland are just beginning to adjust to the lower demand.”
In the Greater Toronto Area, there was a year-over-year price increase of 8.4 per cent, but was outdone by the Greater Vancouver Area’s 21.6 per cent increase.
He continued, “Redistribution of labour across the country is further reinforcing disparities among housing markets, as the broader impacts of the oil recession on Alberta’s economy take hold. For the first time in many years, we are witnessing an out-migration trend in the province as economic conditions and employment prospects dim. We expect British Columbia, followed by Ontario, to be the top recipients of new household inflows in the coming year, which will further fuel housing remand and price appreciation in Greater Vancouver and the GTA. This is in sharp contrast to the situation from 2011 to 2014, and in the mid 2000s, when a booming energy sector attracted families from all over Canada to Alberta.”
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The Canada Mortgage and Housing Corporation has released its most recent Housing Starts report. Housing starts across Canada were down to 196,783 units in March from 201, 618 in February. However, this is in line with the six-month moving average of SAAR (seasonally adjusted annual rates) of national housing starts.
“Overall, starts were trending lower in March due to a slowdown in multi-unit construction,” said the Canada Mortgage and Housing Corporation’s Chief Economist, Bob Dugan. “This was the case across the country, except in British Columbia where declining inventories of new and unsold units as well as low levels of new listings in the resale market spurred builders to start new projects.”
During the month of March, the seasonally adjusted annual rate of housing starts increased in the province of Ontario, but dropped in the Prairies, Quebec, Atlantic Canada and British Columbia.
According to the latest data released by the Canadian Real Estate Association, home sales across Canada increased by 1.5 per cent from February to March of this year, while actual (not seasonally adjusted) activity increased by 12.2% over March of last year. The number of newly listed homes dropped by 1.4 per cent from February to March.
“Greater Vancouver and the GTA are heading into the spring home buying season with soaring demand and a shortage of listings,” said the president of the Canadian Real Estate Association, Cliff Iverson. “Meanwhile, other major urban markets in Canada are well balanced or are amply supplied. 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 sale price in Canada increased by 15.7%, however if Greater Toronto and Greater Vancouver are excluded, it grew by 10.4 per cent.
Gregory Klump, the chief economist for the Canadian Real Estate Association, said that, “Single family home sales in the Lower Mainland of BC and the GTA set new records for the month of March in the range between a-half and one-million dollars – as did sales above a million dollars. Meanwhile, sales below a half-a-million dollars, which were not subject to recently tightened mortgage regulations, are being increasingly restrained in these markets by a short supply of listings. If current sales and listings trends persist, price gains may pick up further this spring.”