Statistics released this week by the Canadian Real Estate Association demonstrated a third consecutive month-over-month decline in national home sales activity. The number of home sales processed through co-operative listing systems such as MLS® decreased by 1.8% from November to December, with sales down in about 60% of local markets.
According to CREA President Laura Leyser, “activity has eased back from stronger than expected levels last summer and is now roughly in line with the ten year monthly average.” She added that mixed signals were anticipated for the months ahead, due to positive year-over-year comparisons masking the recent moderation.
Actual (not seasonally adjusted) activity was up 12.9% from December 2012, with year-over-year increases in about 70% of all local markets. This increase was led by gains in Greater Vancouver, the Fraser Valley, Calgary, Edmonton, Greater Toronto, and Hamilton-Burlington. Across Canada in 2013, MLS® and other co-operative listing systems reported a total of 457,893 home sales, an increase of 0.8% over 2012. CREA Chief Economist Gregory Klump noted that while sales activity has softened in recent months, “absent further mortgage rule changes, sales in 2014 may surpass the annual total for 2013 if demand holds steady near current levels as strengthening economic and better job growth offset the impact of further expected marginal mortgage interest rate increases.”
The number of newly listed homes dropped 4.3% on a month-over-month basis in December, with new supply down in two-thirds of all local markets. The national sales-to-new listings ratio rose to 55% in December, compared to 53.6% in November. This increase demonstrates a “slightly firmer housing market but remains well within balanced territory marked by the range from 40 to 60 per cent, as has been the case since early 2010.”
The actual (not seasonally adjusted) national average sale price for homes in December was $389,119, which reflects a year-over-year increase of 10.4%. This increase drops to 4.6% with the “active and expensive markets” of Greater Vancouver and Greater Toronto removed from the home price calculations. CREA notes that the MLS® Home Price Index is a better gauge of home price trends because it is not affected by changes in the mix of sales activity the way that average price is.
The Aggregate Composite MLS® Home Price Index rose 4.31% year-over-year in December 2013, up from a 4.11% gain in November. Year-over-year price growth picked up among all property types, with the exception of townhouse/row units, where price growth was unchanged from November. One-storey single family homes saw an increase of 5.07%, followed by two-storey single family homes which were up by 4.93%. Townhouses/row units rose 3.13% and apartment units increased 2.87%.
Due to the local nature of the real estate industry, always ensure you speak with your Realtor® for an accurate analysis of market trends in your region. To see the full report, please visit the CREA website. You can contact us directly or search our website for a sales representative if you have any questions about real estate trends in Ottawa or the surrounding area. To receive regular updates about the Ottawa real estate market, please subscribe to our blog or sign up to have entries delivered directly to your e-mail inbox.
Charts from the Canadian Real Estate Association.
