Home Sales Drop Across Canada Again In June 2016

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.”

The Canadian Real Estate Association Has Updated Its Resale Housing Forecast

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.

Royal LePage Releases House Price Survey

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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Home Sales Increase In Canada During March

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.”

CREA: Home Sales Increase Across Canada

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.”

Home Sales Across Canada Increase In November

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.”

National Home Sales Increased From September To October

According to the Canadian Real Estate Association, home sales across Canada increased by 1.8 per cent from September to October, while actual activity was about the same in October 2015 compared to the same time last year.

New listings also increased, but only by 0.9 per cent month-to-month.

“The continuation of low interest rates is supporting home sales activity,” said the president of the Canadian Real Estate Association, Pauline Aunger. “Even so, the strength of sales activity varies by location and price segment across Canada. 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 selling price for a home in October 2015 was 8.3 per cent higher than in October 2014, reaching $454,976. If Greater Toronto and Greater Vancouver are excluded, the average selling price only increased by 2.5 per cent.

Gregory Klump, the chief economist for the Canadian Real Estate Association, said that, “October extended resale housing market trends of recent months. Single detached homes continue to be in short supply while demand for them remains strong in a number of active and populous housing markets in British Columbia and Ontario. Meanwhile an ample supply of condo apartments remains. The balance between supply and demand is generally tighter for single detached homes than it is for condo apartments and that’s unlikely to change any time soon. For that reason, price gains for single detached homes should continue to outstrip those for condo apartment units for some time.”

Toronto And Vancouver Drive Canadian Average Home Prices Upward

The average sales price of a home in Canada rose by 6.1 per cent during the month of September over the same time last year. However, if the sales in Greater Vancouver and Greater Toronto are removed from the equation, the average price only rose by 2.9 per cent.

“Sales are off the peak reached earlier this year but are still running strong, particularly in British Columbia and Ontario,” said Pauline Aunger, the president of the Canadian Real Estate Association. “That said, sales strength varies considerably among markets and price segments across Canada. 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.”

Sales activity across Canada decreased by 2.1 per cent from August to September, while sales were up by 0.7 per cent over September last year.

“Although national sales activity was not as strong in September as it was earlier this year, a lack of supply in some parts of the country is likely keeping a lid on transactions,” said the chief economist at the Canadian Real Estate Association. “The GTA and Greater Vancouver made sizeable contributions to the monthly decline in national sales activity. They also rank among the tightest urban housing markets in the country due to a shortage of inventory and supply of land on which to build, which is why prices there continue to grow strongly.”

Home Sales and Prices Increase Across GTA in September

The Toronto Real Estate Board says that home sales in Toronto through the month of September increased by 2.5 per cent to 8,200 total sales. Over the first three quarters of 2015, home sales increased by 9.5 per cent compared to the same time last year.

“We are on track for record home sales reported through TREB’s MLS System this year,” said the president of the Toronto Real Estate Board, Mark McLean. “Barring a drastic shift in the economy over the next three months, total transactions reported by TREB members in 2015 are expected to be at or near the 100,000 mark. This is a testament to the importance that GTA households put on home ownership as a long-term investment.

In addition, the average selling price for a home in Toronto increased by 9.2 per cent to reach $627,395.

“While September was the second straight month where annual growth in new listings outstripped annual growth sales, total active listings at the end of the month still remained below last year’s level,” said the director of market analysis for the Toronto Real Estate Board, Jason Mercer. “This, coupled with the record pace of sales experienced so far this year, suggests that competition between buyers will remain strong as we move into the fourth quarter. Expect strong rates of price growth to continue through the remainder of 2015 and into 2016.”