According to statistics released this week from the Canadian Real Estate Association (CREA), national home sales increased 5.9% between April and May of 2014, which has been highlighted as the largest increase in nearly four years. As some may expect, the largest sales increases were recorded in Calgary, Montreal, and the GTA, some of the largest Canadian cities. Despite this, CREA President Beth Crosbie noted that “The monthly increase in May activity was widespread among local housing markets, with some 80 per cent of them reporting stronger sales compared to April.”
Actual year-over-year sales rose as well, increasing by 4.8% over May of 2013 and 3.8% over the 10-year average for the month of May. Year-over-year sales increased in about 60% of local markets, with the national sales-to-new listings ratio at 53.1%. While the sales-to-new listings ratio is up over the 52% recorded in April and March, CREA notes that this is within the 40-60% range that reflects a balanced market.
The number of newly listed properties in Canadian real estate markets also rose 3.8% in May, with new listings up in approximately 80% of local markets. Gregory Klump, Chief Economist with CREA, added that sales were “expected to improve in tandem with listings” following “a brutal winter that delayed the lanch of the spring market.”
Home prices across the country also increased, with the average price for a home sold in Canada rising 7.1% to $416,584 when compared to the same month last year. However, the average price is skewed upward by the country’s two most expensive local real estate markets. After removing Toronto and Vancouver from the equation, the average sale price for homes is at $336,373, a year-over-year increase of 5.3%.
The price of a two-storey home in Canada rose 5.98%, with one-storey detached homes close behind at an increase of 5.19%. Townhomes and row houses increased by 5.04%, while the average price of apartment units increased by just 2.93%. The biggest price gains were recorded in Calgary, with the MLS Home Price Index rising 10.12% over 2013. The GTA and Greater Vancouver followed this at 7.08% and 4.27%, respectively.
CREA projects that national sales will reach 463,400 units in 2014, with the average sale price expected to rise by 5.7% this year to $404,300. For 2015, CREA is predicting sales activity to reach 467,800 units with the average sale price rising a further 0.7% to $407,300. Due to the local nature of real estate market trends, be sure to contact a sales representative in your neighbourhood for more specific information.
Visit the CREA website to read the full report, or contact us at any of our branch locations to find out more about the national or local Ottawa real estate markets. You can also find helpful tips and advice in our Information and Advice section, or subscribe to our blog for up-to-date details on the real estate markets in Ottawa and Eastern Ontario.
