Canadian property sales up seven months in a row

Toronto, Canada, where sales and prices fky higher than the rest of the country Photo: Phil Grondin

Sales rose 1.8 per cent on a month-over-month basis in August 2014, according to the Canadian Real Estate Association, marking the seventh consecutive monthly increase, and the highest level for sales since January 2010.

Activity was driven by Greater Vancouver, Calgary and Greater Toronto, though, with fewer than half of all local housing markets actually seeing an increase.

"Sales activity in recent months has remained stronger than was anticipated earlier this year." said Gregory Klump, CREA’s Chief Economist. "Listings and sales this spring were deferred due to unseasonably harsh weather, which subsequently supported activity once the delayed spring home buying season got into gear. This trend was reinforced by a decline in mortgage interest rates."

"The boost from deferred sales is still expected to prove transitory," continued Klump. "While national activity has yet to cool, sales were down from the previous month in the majority of Canada’s local markets, which may be early evidence that the transitory boost is fading. That said, low interest rates will continue to support housing affordability and sales activity."

Indeed, year-to-date sales activity is up 4.3 per cent compared to the first eight months of 2013, although it remains in line with the 10-year average for the period.

The number of newly listed homes fell 1.2 per cent in August compared to July. Led by Greater Toronto, new supply was down in about 60 per cent of local markets.

The actual (not seasonally adjusted) national average price for homes sold in August 2014 was $398,618, up 5.3 per cent from the same month last year.

Much like sales, the national average price continues to be skewed upward by sales activity in Greater Vancouver and Greater Toronto, which are among Canada’s largest and most expensive housing markets. Excluding these two markets from the calculation, the average price is a relatively more modest $324,738 and the year-over-year increase shrinks to 3.9 per cent.

"As always, all real estate is local and whether you’re looking to buy or sell, your local Realtor is your best source of information about the housing market where you currently live or might like to in the future," added CREA President Beth Crosbie.