The Canadian Real Estate Association (CREA) has released home sales statistics for December 2014, reporting that sales in that month decreased 5.8% on a month-over-month basis. Meanwhile, actual (not seasonally adjusted) activity stood 7.9% above levels reported in December of 2013, with the number of newly listed homes rising 1.1% when compared to November.
While December sales were down in about two-thirds of all local markets when compared to the previous month, home sales activity also remained above year-ago levels in most local housing markets. CREA President Beth Crosbie added that “sales were also stronger in December than they were the previous month in about one-third of all local markets in Canada”. Due to the local nature of real estate market trends, be sure to speak with a licensed sales representative in your area for more accurate information.
Sales Activity at Highest Annual Level in Seven Years
Gregory Klump, CREA’s Chief Economist, added that “December sales were down from the previous month in a number of Canada’s largest and most active housing markets, indicating a broadly based cooling off for Canadian home sales as 2014 came to an end”. There were 481,162 property sales across the country throughout 2014, the highest annual level in seven years. Annual sales activity was up 5.1% over 2013 and stood 2.6% above the 10-year annual average.
The number of newly listed home increased 1.1% in December, led by Calgary, Regina, and Ottawa, with new supply up in just over half of all local markets. December’s sales-to-new-listings ratio was 51.8%, a decline from the mid-55% range seen in the previous four months. This is indicative of a balanced real estate market, in which the sales-to-new-listings ratio generally falls between 40% and 60%. There were 6.2 months of inventory reported in December, up from 5.8 months in November, another indicator that the national real estate market has become more balanced.
National Average Sale Price Rises 3.8%
The Aggregate Composite MLS® HPI rose 5.38% on a year-over-year basis in December, with monthly price gains remaining between 5% and 5.5% throughout 2014. Two storey single family homes continue to post the biggest year-over-year price gains, increasing 6.98%, with townhouses and row units following at an increase of 5.31%. One storey single family homes saw a year-over-year increase of 4.51%, with price growth for apartment units remaining more modest at 3.51%.
The actual (not seasonally adjusted) national average price for homes sold in December was $405,233, an increase of 3.8% year-over-year. The national average home price remains skewed by activity in Greater Vancouver and Greater Toronto, two of Canada’s most active and expensive markets. With these two markets removed, the national average home price was $319,481, a year-over-year increase of just 1.9%.
Visit the CREA website to read the full report, or contact us directly for more information about real estate trends in your Ottawa neighbourhood. We’re happy to help you find out more about your local market, and can provide a no obligation market evaluation of your home if you’re considering selling. You can also read our online guides for both buyers and sellers, or subscribe to our blog to receive regular updates about the Ottawa real estate market.