Sales of canadian property up in august

Transactions rose 2.8 per cent month-on-month, with overall activity 11.1 per cent higher than August 2012, although this figure is slightly distorted by a significantly quieter than average period last year.

Indeed, deals jumped annually in two-thirds of local markets this August, as the market continues to perform well in 2013. Sales increased by double digits in several markers, including Victoria, Greater Vancouver, Vancouver Island, the Fraser Valley and Calgary.

“Sales activity dropped sharply around this time last year in the wake of tightened mortgage rules and has improved since then, so a sizeable year on year increase this August was expected,” explained said Gregory Klump, CREA’s chief economist.

The average sales price for Canadian property was $378,369 in August, roughly 8 per cent higher than August 2012. According to the MLS Home Price Index, though, which is unaffected by changes in sales trends, prices increased at a lower rate: one-storey homes saw prices jump 3.45 per cent, just behind two-storey homes, which saw prices hop 3.61 per cent.

325,180 homes have been sold in total so far this year, 2.9 per cent fewer than the first eight months of 2012. The year-on-year figures are expected to be negative for the whole of 2013.

“Buyers who put off purchase decisions or who were otherwise sidelined by tighter mortgage rules and lending guidelines implemented last year were anticipated to return to the housing market,” added Kump.

“That said, the upward trend and levels for activity in recent months has been steeper than expected, but that may not last.”