“Sales activity in recent months has remained stronger than was anticipated earlier this year,” said Gregory Klump, CREA’s Chief Economist. “Listings and sales this spring were deferred due to unseasonably harsh weather, which subsequently supported activity once the delayed spring home buying season got into gear. This trend was reinforced by a decline in mortgage interest rates.”
Seven provinces and territories enjoyed year-over-year sales increases in August, led by Northwest Territories (50 per cent increase), British Columbia (7 per cent), Prince Edward Island (5.2 per cent), New Brunswick (5.1 per cent), Alberta (3.8 per cent), Ontario (2.4 per cent), and Saskatchewan (1.3 per cent).
“Sales picked up in some of Canada’s most active and expensive real estate markets which fuelled another national increase,” said CREA President Beth Crosbie. “Even so, the national increase in sales does not reflect local trends in many markets across Canada.”
Overall, Canada saw a 2.1 per cent year-over-year uptick in sales.
However, the flood created by deferred winter sales is expected to dry up, according to CREA.
“The boost from deferred sales is still expected to prove transitory,” Klump said. “While national activity has yet to cool, sales were down from the previous month in the majority of Canada’s local markets, which may be early evidence that the transitory boost is fading. That said, low interest rates will continue to support housing affordability and sales activity.”
Brokers who lamented the early year slump have likely made up for the lost business, according to recent stats that point to continued strong summer sales.