The Canadian Real Estate Association (CREA) released its latest statistics on the national housing market yesterday, reporting a 0.8% increase in sales activity on a month-over-month basis. Actual sales activity (not seasonally adjusted) rose 11.2% compared to June of last year, while the national average sale price increased 6.9% on a year-over-year basis.
National Home Sales Increase in Almost Half of Local Markets
June’s sales marked the fifth consecutive monthly increase, and the highest level for sales since March 2010. An increase in sales was reported in nearly 50% of all local real estate markets, led by gains in Greater Vancouver and Montreal. CREA President Beth Crosbie added that while sales have improved since their slower start this year, “there are still important differences in how housing markets are faring depending on location, housing type and price point.” This reflects the message reported in Royal LePage’s Quarterly Home Price Survey, which was released earlier this month.
The number of newly listed homes was little changed in June and the national sales-to-new listing ratio increased just slightly over May to 53.6% from 53.2%, which is still within the 40%-60% range that marks balanced territory. At the end of June 2014, the number of months of inventory remained at 6.0 months, the same number posted in May of this year.
Average Sale Price for Canadian Homes Increases in June
The Aggregate Composite MLS® Home Price Index was up 5.4% year-over-year, following slower price gains in April and May. The Home Price Index provides a better gauge of price trends than average price, as it is not affected by changes in the mix of sales activity that can affect average sale prices. According to the MLS® Home Price Index, the price of two-storey homes increased 6.19%, with one-storey homes and bungalows close behind at 5.35% and 5.07%, respectively. Apartment unit prices remained comparatively modest with a 3.85% increase.
The actual (not seasonally adjusted) national average price for homes in June 2014 was $413,215, which is an increase of 6.9% year-over-year. It’s important to note that the national average continues to be skewed upward by sales activity in larger markets, such as Greater Toronto and Greater Vancouver. With these two markets removed, the national average sale price in June is $336,164, which is a year-over-year increase of 5.2%.
Due to the local nature of real estate markets, be sure to contact a sales representative in your area for more specific information. If you’re thinking of buying a home in Ottawa, please feel free to contact us directly or at any of our branch locations. We can also provide a free market evaluation of your home if you’re thinking of selling. Be sure to browse our website for plenty of tips for both buyers and sellers, and don’t forget to subscribe to our blog to keep up-to-date with the latest real estate news!
Images provided by CREA.
