The Canadian Real Estate Association (CREA) reported that home sales in September decreased 1.4 per cent from August, marking the first month-over-month decline since January. Approximately 60 per cent of Canadian markets saw a decrease in home sales, including the city of Toronto, Calgary, Edmonton, Kitchener-Waterloo, London and St. Thomas, Winsor-Essex and Ottawa.
Beth Crosbie, CREA president, explains the reasons behind this month’s decline: “Affordably priced single-family homes are in short supply in some of Canada’s hottest housing markets, which contributed to the monthly decline in national sales activity in September. That said, there are other markets with ample supply but sellers there are holding firm on price.”
Some markets, on the other hand, experienced a month-over-month increase, including Mississauga, York Region and Durham, all of which are a part of the Greater Toronto Area. Fraser Valley, Vancouver Island, Sherbrooke, and the Northern region of Nova Scotia also had an increase in sales activity in September.
Despite the month-over-month decline in September, home sales and prices in the third quarter were up in comparison to the second quarter. CREA chief economist Gregory Klump explains that low mortgage rates “has been, and will continue to be, the key support for home sales activity amid continuing price increases in some of Canada’s most active and expensive urban markets.”
Additionally, year-to-date home sales and prices have continued to climb. Sales jumped five per cent in comparison to September 2013. The national average home price, not seasonally adjusted, is $408,795, up 5.9 per cent since this time last year. In terms of dwelling type, two-storey single-family homes had the biggest year-over-year price gain, up 6.52 per cent, followed by townhouse/row units with an increase of 5.51 per cent. One-storey single-family homes also increased 5.07 per cent.