CREA reports home sales in September up 15.5% from year ago

Home sales through the Canadian Multiple Listing Service were up 0.6 per cent month over month

Home sales in Canada’s big cities continued a rebound in September with a 15.5 per cent increase in sales compared with a year ago, according to the Canadian Real Estate Association.

The association said Tuesday that sales compared with a year ago were up in Canada’s large urban markets, including B.C.’s Lower Mainland, Calgary, Edmonton, Winnipeg, the Greater Toronto Area, Hamilton-Burlington, Ottawa and Montreal, while data showed markets were still in balanced territory.

“Home sales activity and prices are improving after having weakened significantly in a number of housing markets,” said CREA chief economist Gregory Klump in a statement.

“How long the current rebound continues depends on economic growth, which is being subdued by trade and business investment uncertainties.”

On a month-over-month basis, home sales through the Canadian Multiple Listing Service were up 0.6 per cent in September.

Higher home sales in September was a continuation of a rebound from a six-year low hit in February. Sales started to pick up in March after mortgage rates started to fall, said BMO senior economist Robert Kavcic.

“The winning streak for Canadian existing home sales continued in September…that marks an impressive seventh consecutive monthly gain, leaving the level of activity comfortably above the 10-year average.”

ALSO READ: Vancouver’s luxury real estate market to get a boost, forecast says

The five-year fixed mortgage rate has declined by about one percentage point to slightly below 2.5 per cent, a drop Kavcic said was significant from an affordability perspective but not likely to drop much further for now.

The increase in sales, combined with a small decline in new supply, pushed the sales-to-new listings ratio to 61.3 per cent, well above the long-term average of 53.6 per cent to favour sellers, but still considered balanced.

The home inventory, which shows how long it would take to liquidate inventories at current sales levels, also shifted to further favour sellers while still remaining in what’s considered a balanced market.

The national average price for homes sold in September 2019 was about $515,500, up 5.3 per cent from the same month last year.

Excluding the Greater Vancouver and Greater Toronto regions, the average price was less than $397,000 and amounting to a year-over-year gain of 3.3 per cent

The national benchmark home price index, designed to exclude homes on the high and low end of the market to more represent a typical home, had a year over year price increase of a more modest 1.3 per cent.

Benchmark home prices in Greater Vancouver were down the most from a year ago after a 7.3 per cent decline. The Greater Toronto area saw the benchmark price climb five per cent, while Ottawa saw the biggest gains reported at 9.6 per cent from a year ago.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Salmon Arm women bring soccer to girls in Kenyan village

Cultural disconnections melt away with learning and laughter

Vandals on ATV damage outdoor skating rink in Silver Creek

Damage delays preparations for ice surface in community park

Letter: Spouse of Shuswap first responder shares challenges, gratitude

One in three first responders suffer in silence, resources available to help them and their families

Water quality advisory issued for Sunnybrae water system

Not a boil-water advisory but users urged to take precaution

Uptown Tim Hortons intersection in Salmon Arm bumped from traffic circle plan

Shuswap Street and 10th Avenue SW, Kal Tire at 5th Avenue and 10th Street SW now top priorities

Get your head out of clouds, North Okanagan

Fall fog sticks around all day in northern portion of valley

Highway 97 in Lake Country reopens after police incident near Airport Inn

Traffic was backed up on the highway for several hours

Canucks erupt with 5 power-play goals in win over Nashville

Vancouver ends three-game slide with 6-3 triumph over Predators

Shuswap farm receives award for high animal welfare standards

Keenan Family Farms also recognized for sustainable agriculture methods

65-million-year-old triceratops makes its debut in Victoria

Dino Lab Inc. is excavating the fossilized remains of a 65-million-year-old dinosaur

B.C. widow suing health authority after ‘untreatable’ superbug killed her husband

New Public Agency Health report puts Canadian death toll at 5,400 in 2018

Changes to B.C. building code address secondary suites, energy efficiency

Housing Minister Selina Robinson says the changes will help create more affordable housing

Most Read