The Canadian Real Estate Association (CREA) has released its national home sales statistics for the month of July, 2014. According to the latest report, home sales activity increased by nearly 1% in July over the previous month, with home sales processed through the MLS® Systems of Canadian real estate boards rising 0.8% on a month-over-month basis. This increase marks the sixth consecutive monthly increase and the highest level for sales since March 2010.
Sales Activity Increases in Ottawa
Sales activity rose in approximately 60% of local markets, led by gains in Victoria, Winnipeg, Ottawa, and London and St. Thomas. While CREA President Beth Crosbie noted that “on the surface, national sales activity in July was similar to what we saw in May and June,” she went on to add that “July sales picked up in markets that struggled to gain traction in the spring, while activity eased slightly in some of Canada’s largest urban markets.”
In July 2014, actual (not seasonally-adjusted) activity stood 7.2% above levels posted in the same month of last year, with sales up from year-ago levels in about 70% of local markets. Year-to-date sales activity increased 4.7% over the first seven months of 2013, and is in line with the ten year average for the period. The number of newly-listed homes increased slightly as well, posting a month-over-month increase of 0.4%. The national sales-to-new-listings ratio was 53.6% in July, little changed from previous months, and remaining well within the 40-60% range that marks balanced territory. Just over half of all local markets posted a sales-to-new-listings ratio within this range in July. The number of months of inventory for Canadian home sales was 6.0 months, which is unchanged from June and May.
According to the report, new listings and sales activity have closely tracked each other since February, with many new listings entering markets with tight supply and continuing demand. The strong sales reported in recent months “likely reflects how many properties were snapped up once they finally hit the market following the harsh winter that caused sales and new listings to be deferred.” Gregory Klump, CREA’s Chief Economist, added that as low mortgage rates continue to affect sales activity, “mortgage financing will remain attractive over the second half 2014 and continue to support Canadian economic growth.”
Home Prices Continue to Edge Up
The Aggregate Composite MLS® Home Price Index (HPI) rose 5.33% year-over-year in July, which is little changed from the 5.4% increase recorded in June 2014. Two-storey single family homes continued to post the largest year-over-year price gains with an increase of 6.32%, followed by one-storey single family homes, which increased 5.47%, and townhomes, which increased 5.33%. Price growth for condominiums was more modest at a 3.18% increase. The MLS® HPI provides a better gauge of price trends than using averages as it is not affected by changes in the mix of sales activity the way that average price is.
The actual, not seasonally-adjusted, national average price for a home sold in July was $401,585, an increase of 5% over the same month last year. The national average sale price for homes continues to be skewed upward by sales activity in larger, more expensive local markets such as Greater Vancouver and Greater Toronto. When excluding these two markets, the average price is $327,988, a year-over-year increase of only 4%.
Due to the local nature of real estate market trends, if you’re considering buying or selling a home in the Ottawa area be sure to speak with an experienced sales representative who can give you a more accurate idea of trends in your neighbourhood. Read the full sales activity report on the CREA website, or feel free to contact us for additional information. We’re happy to help you find the value of your current Ottawa home before you decide to move, and you can find more information on both buying and selling on our website. Be sure to subscribe to our blog to receive the latest information about the real estate market in Ottawa, along with helpful tips for home buyers and sellers.
