The latest numbers from the Canadian Real Estate Association point to the country’s two hottest markets as the greatest drivers of year-over-year sales and price growth.
During the month of March, CREA recorded a 9.5 per cent increase in the number of transactions, compared to the year-ago period. Much of that boost came from two of the country’s largest cities, where the condo market remains extremely active.
“Greater Vancouver and the GTA are really the only two hot spots for home sales and prices in Canada,” said Gregory Klump, CREA’s chief economist. “Price gains in these two markets are being fuelled by a shortage of single family homes for sale in the face of strong demand. Meanwhile, supply and demand for homes is well balanced among the vast majority of housing markets elsewhere across Canada.”
The continuing rising home sales in Toronto and Vancouver may give support to those saying the federal government may tighten mortgage rules once again.
In Vancouver, that number of real estate transactions rose 53.2 per cent as condo sales jumped 12.7 per cent over March 2014. Total March sales were up 10.6 per cent in Toronto, with condo sales skyrocketing 46.8 per cent from the year-ago period.
Data showing sharp home price growth in key markets may attract the attention of the federal government and possibly more tightening of mortgage rules.