The Canadian Real Estate Association (CREA) released its monthly home sales statistics yesterday, reporting that national home sales decreased 3.1% on a month-over-month basis in January. Sales were down in about 60% of all local housing markets, with the monthly decline largely reflecting fewer sales in Alberta and Saskatchewan.
Real Estate Market Remains Balanced
According to the report from CREA, actual (not seasonally adjusted) activity in January was 2% below sales activity reported in January of last year, marking the first year-over-year decline since April 2014. Gregory Klump, CREA’s Chief Economist, added that “the decline in national sales largely reflects weakened activity in Calgary and Edmonton”. Removing these two markets from the national totals, sales activity in January was 1.9% above year-ago levels.
The number of newly listed homes increased 0.7% month-over-month, with new supply increasing in just over half of all local markets, led by Edmonton and Greater Toronto. Nationally, the sales-to-new-listings ratio was 49.7% in January, which remains within the 40% to 60% range that is generally indicative of a balanced market. The ratio was within this range in more than half of all local markets in January, and there were 6.5 months of inventory reported nationally at the end of last month, another indicator of a balanced real estate market.
Average Home Sale Price Rises 3.1% Nationally
The Aggregate Composite MLS Home Price Index, which provides a better gauge of price trends than average sale price, rose 5.17% year-over-year in January, with two-storey single family homes posting the largest year-over-year price gains, rising 6.57%. These were followed by townhouse/row units, which rose 5%, while price gains for one-storey single family homes increased 4.61% and condo apartments rose a more modest 3.11%.
The actual (not seasonally adjusted) national average sale price in January was $401,143, which is an increase of 3.1% over the same month of last year and the smallest increase since April 2013. The national average sale price remains skewed, however, by sales activity in Greater Vancouver and Greater Toronto, two of the country’s most active and expensive markets. When these two markets are removed, the national average sale price is $312,280, a year-over-year decrease of less than 1%.
To read the full report, visit the CREA website or contact us directly for more information. Due to the local nature of real estate market trends, it’s important to speak with a sales representative with experience in Ottawa and Eastern Ontario for accurate details on real estate trends in your area.
Be sure to read our online guides for home buyers and sellers for information on what to expect when buying or selling a home, or get in touch with us for a free, no obligation market evaluation of your property. We’re happy to help with any of your real estate needs!
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Images from CREA.
