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.

Bank of Canada Keeps Interest Rates The Same

On May 25^th, the Bank of Canada announced its trend-setting overnight lending rate would remain at 0.5 per cent. The advertised five-year lending rate is 4.64 per cent, which is the same as one year ago.

According to the Canadian Real Estate Association in a press release, “The Bank indicated it expects that recent wildfires in Alberta will cause the Canadian economy to shrink slightly in the second quarter and then rebound in the third as oil resumes production and reconstruction begins in affected communities. With inflation largely in line with the Bank’s expectations and the economy continuing its uneven adjustment the Bank of Canada is likely to keep interest rates on hold well into 2017.”

The next scheduled Bank of Canada interest rate announcement will be on July 13.

Home Sales In Canada Reach New Record During April

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.”

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 January

According to the latest statistics released from the Canadian Real Estate Association, home sales increased by 0.5% nationally from December to January, while home sales increased by 8 per cent year over year in January 2015 compared to last year.

“Single family home buyers in the GTA and Lower Mainland of British Columbia had been expected to bring forward their purchase decisions before tightened mortgage regulations take effect in February 2016,” said the president of the Canadian Real Estate Association, Pauline Aunger, in a press release. “If listings in these and nearby markets were not in such short supply, January sales activity would likely have reached even greater heights. Meanwhile, other major urban housing markets have an ample supply of listings, particularly where some home buyers have become increasingly cautious amid an uncertain job market outlook. 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 Canada increased by 17 per cent over January of last year, however if you remove Ontario and British Columbia from the equation the average home price in Canada actually dropped by 0.3 per cent.

Gregory Klump, the chief economist for the Canadian Real Estate Association, said that, “January 2016 picked up where 2015 left off, with single family homes in the GTA and Greater Vancouver in short supply amid strong demand standing in contrast to sidelined home buyers and ample supply in a number of Alberta housing markets. Tighter mortgage regulations that take effect in February may shrink the pool of prospective home buyers who qualify for mortgage financing and cause national sales activity to ease in the months ahead.”

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.”

National Home Sales Remain Steady In August of 2015

Home sales across Canada increased by only 0.3 per cent from July to August, but not actual (not seasonally adjusted) activity was 4 per cent higher than August of last year.

“August marked the fourth month in a row for strong and stable national sales activity,” said Pauline Aunger, the president of the Canadian Real Estate Association. “While home prices increased in British Columbia and in the Greater Toronto Area, they have been holding fairly steady in many other parts of the country for some time now. 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 number of new listings increased by 0.5 per cent from July to August, while the national average price increased by 4.2 per cent over last year excluding Greater Vancouver and Greater Toronto. If Greater Vancouver and Greater Toronto are included, the national average sale price is up by 8.7 per cent.

“Prices continue to rise in Ontario and British Columbia, where listings are either in short supply or heading in that direction,” said the chief economist for the Canadian Real Estate Association Gregory Klump. “August also provided early evidence that modest price growth is re-emerging in some markets in Quebec and New Brunswick. The continuation of low interest rates is supporting home sales and price trends, and is likely to keep doing so for some time.”

The Canadian Real Estate Association Has Updated Their Forecast For 2015 and 2016

The Canadian Real Estate Association has announced that it has updated its national home sales activity forecast for the remainder of 2015 and into 2016.

In Ontario, home sales are expected to increase by 7.3 per cent this year, while nationally the average home price is expected to increase by 6.2 per cent to $433,600.

“Since CREA’s forecast published in June, the outlook for oil and other natural resource commodities has deteriorated,” said the Canadian Real Estate Association in a press release. “As a result, the economic and employment backdrop has dimmed for provinces whose prospects rely on their production.

But, the continuation of low interest rates and supportive demographics has resulted in stronger than expected home sales activity in British Columbia and Ontario. These two provinces account for approximately 60 per cent of Canadian housing activity, so stronger than expected trends in these provinces have contributed to an upward revision to CREA’s forecast for national sales activity and average prices.”

For more information, check out the housing forecast update here.

GTA And BC Only Areas Of Canada Where Home Prices Growing Strongly

The Canadian Real Estate Association’s latest home sales statistics for July show that home prices in the Greater Toronto Area and Greater Vancouver Area are growing much stronger than in the rest of the country.

The average national sales price for homes increased by 8.9 per cent in July compared to the same time last year, but if Toronto and Vancouver are excluded the price only increased 4.1 per cent.

Gregory Klump, the chief economist for the Canadian Real Estate Association, said that, “It’s fair to say that the strength of national sales is still a story abut two cities, but it’s equally about how trends there are spreading out in their respective provinces. Trends in British Columbia and Ontario have a big influence on the national figures, since they account for about 60 per cent of national housing activity. As a result, the national picture reflects how demand is running high for the short supply of single family homes in and around the GTA while the balance between supply and demand is tightening in B.C.’s lower mainland. These remain the only places in Canada where home prices are growing strongly.

The number of newly listed homes increased by 0.2 per cent from June to July of this year, while the number of home sales decreased by 0.4 per cent in the same time frame.

“National sales activity remains solid, fuelled by strength in British Columbia and the Greater Toronto Area, where listings are in short supply or trending that way,” said the president of the Canadian Real Estate Association, Pauline Aunger. “That said, markets elsewhere across Canada are largely well balanced and in some cases have an ample supply of listings. As always, 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.”