A new home is displayed for sale in a new housing development in Ottawa on Tuesday, July 14, 2020. The Canadian Real Estate Association says home sales in September hit another record for the month as they continued to climb higher and prices soared.THE CANADIAN PRESS/Sean Kilpatrick

A new home is displayed for sale in a new housing development in Ottawa on Tuesday, July 14, 2020. The Canadian Real Estate Association says home sales in September hit another record for the month as they continued to climb higher and prices soared.THE CANADIAN PRESS/Sean Kilpatrick

Canada records record home sales for September, up 45.6% from 2019

Actual national average home price in September was a record $604,000

The number of Canadian homes sold last month set a record for the month of September and the national average price soared 17.5 per cent from last year., according to a report Thursday.

There were 45.6 per cent more sales compared with September 2019, the Canadian Real Estate Association said. Compared with August, CREA said home sales were up 0.9 per cent on a seasonally adjusted basis.

The actual national average home price in September was a record $604,000, up 17.5 per cent from September 2019.

“Many Canadian housing markets are continuing to see historically strong levels of activity as we enter into the fall market of this very strange year,” CREA chair Costa Poulopoulos said in a statement.

In addition to a shortage of property listings in a number of regions, there’s been “fierce competition” among buyers, Poulopoulos said.

CREA senior economist Shaun Cathcart said other factors included pent-up demand due to early pandemic-related lockdowns, low interest rates, and government COVID-19 supports.

“But I think another wild card factor to consider, which has no historical precedent, is the value of one’s home during this time. Home has been our workplace, our kids’ schools, the gym, the park and more. Personal space is more important than ever.,” Cathcart said.

Douglas Porter, chief economist for BMO Capital Markets, said September’s price increase wasn’t a fluke as the average gain over the first nine months of 2020 was 11.6 per cent.

But Porter’s commentary concluded by inserting doubt that the “recent sizzling strength” can persist.

“The underlying economic conditions simply do not support such a piping hot market over a sustained period,” Porter wrote.

CREA said the national average price would be about $125,000 lower if sales in Greater Vancouver and the Greater Toronto Area are excluded..

But Porter noted that the MLS Home Price Index, which adjusts for different type of properties sold, has risen 10.3 per cent in the past year.

In September, the MLS HPI was up 1.3 per cent from August.

CREA attributed the modest month-over-month increase in the number of homes sold, compared with August, to declines in the Greater Toronto Area and Montreal.

Those were offset by gains in Ottawa, Greater Vancouver, Vancouver Island, Calgary and Hamilton-Burlington, Ont.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Real estate

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The Sicamous Eagles recently moved into the “Eagles’ Nest” dormitory behind the Sicamous and District Rec Centre. (Jim Elliot/Eagle Valley News)
Sicamous Eagles move into dormitory on arena grounds

The KIJHL hockey team’s billet system was strained by COVID-19 so they are piloting a new solution

After dragon boat races, the Carnation Ceremony remembers those who have died and those who are fighting cancer. This year, during Breast Cancer Awareness Month, the Friends Abreast Dragon Boat team delivered 400 carnations to the staff at nine public schools, three SASCU offices and the women’s league at the curling rink as a reminder for women to book their mammogram appointments. (File photo)
Salmon Arm dragon boat team gives carnations as mammogram reminder

Breast cancer second leading cause of cancer death among Canadian women

COVID-19. (Image courtesy CDC)
Interior Health reports 18 COVID-19 cases, highest daily count since July

The total of COVID-19 cases in the region is now at 662

A Kelowna clinic decided to immunize their patients in a drive-thru flu clinic earlier this month. (Twila Amato - Black Press Media)
Interior Health anticipates increase in flu vaccinations this season

Some 300,000 doses of flu vaccine ready for distribution across Southern Interior

Snow started falling early Oct. 23, 2020 to leave Salmon Arm and area with a wintery look. (Martha Wickett - Salmon Arm Observer)
Snow in Shuswap this early in October rare but no records broken

Environment Canada predicts clear weather in Salmon Arm for election day – Oct. 24

B.C. provincial health officer Dr. Bonnie Henry gives a daily briefing on COVID-19 cases at an almost empty B.C. Legislature press theatre in Victoria, B.C., on March 25, 2020. (Don Craig/B.C. government)
B.C. sees 223 new COVID-19 cases, now 2,009 active

Two new care home outbreaks in Surrey, Burnaby

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Voters are saying they felt safe voting in person despite the current pandemic. (Phil McLachlan - Capital News)
Central Okanagan voters talk about their pandemic election experience

Despite an election taking place during COVID-19, residents said they felt safe voting in person

Efforts to replace the aging Rutland Middle School have been put off by another year by the ministry of education. (File photo)
Education ministry won’t replace Central Okanagan school anytime soon

New Westside Secondary top priority for ministry of education

Cole Collingwood casts his mock ballot at Vernon’s Mission Hill Elementary School ahead of the provincial election Oct. 24, 2020. (Brendan Shykora - Morning Star)
PHOTOS: Okanagan students cast mock election ballots

At Mission Hill Elementary, the election is a chance to learn about the democratic process

Thanks to efforts by a Kelowna shelter and Elections BC, anyone who wishes to can vote in the 2020 BC Provincial Election, even if they don’t have a fixed address. (THE CANADIAN PRESS/Darryl Dyck)
Kelowna group ensures people experiencing homelessness can vote

Shelter supervisor says voting ‘a fundamental right’ even for those without a fixed address

(Big White Ski Resort photo)
Big White receives 21 cm of snow in 24 hours

Resort’s snow base 41 cm deep, one month until opening day

The deer were allegedly shot within Princeton town limits, late at night. Black Press File Photo.
Armed man, in full camouflage, allegedly shoots deer in downtown Princeton

‘The list of charges goes on and on,’ said RCMP Sgt. Rob Hughes

Most Read