Slow start to 2014 for industry professionals

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As temperatures dropped in January so too did housing sales across the country as Canadians preferred to stay inside the warmth of home than to trudge through the snow to visit open houses.

“A number of buyers likely waited out January’s deep freeze before going house hunting, particularly where I’m from in Southern Ontario,” CREA President Laura Leyser said. “It’s a perfect example of how a local influence that may not be shared by other markets can factor into national sales activity. Like the weather, all real estate is local.”

Nine provinces and territories experienced year-over-year percentage drops in January, with only 9,298 homes changing hands in Ontario; accounting for a 6.1 per cent drop in sales for the province. That drop was due, in large part, to the GTA’s underperformance in January. The region saw a 5.5 per cent decrease in sales. 

Other provinces that recorded significant sales drops include Manitoba (-6.3), Quebec (-3.1), New Brunswick (-6), Nova Scotia (-17.2), Prince Edward Island (-17.1) and Newfoundland & Labrador (-14.7).

Meanwhile, Canada’s three most western provinces fared fairly well. British Columbia saw a 24.5 per cent jump in sales, Alberta enjoyed a 5.6 per cent increase and Manitoba recorded a slight 1.3 per cent hike.

And the rest of Canada’s markets are expected to follow suit as the colder months give way to a milder end of winter and, eventually, the beginning of spring.

“Canadian housing market performance in January was a weather report of sorts, with January’s Polar Vortex having dented both resale activity and new construction,” said CREA Chief Economist Gregory Klump. “We’ll be keeping a close eye on February’s numbers for signs of a rebound in Southern Ontario, where sales reflected deferred home purchases due to cold weather rather than home buyers getting cold feet.”
 
  • rosskay@rosskay.com on 2014-03-04 9:51:02 AM


    From Ross Kay
    The numbers reported in this story are factually incorrect. In order to minimize confusion let's llok at one Province, the biggest of them all Ontario.

    The number of Sales reported for Ontario are inflated by in excess of 17% over the number of sales that actually took place.

    Unless someone thinks 2000 sales took place in James Bay, the numbers don't add up.

    Mortgage brokers across Ontario should have seen their book of business being over 17% higher if these numbers were correct.

    Actually all the other provincial numbers are similarly skewed with inflationary factors that are naturally occurring as a result of how numbers were reported since 2007.
    www.RossKay.com

  • Paul Therien - CENTUM on 2014-03-04 11:45:47 AM

    I can't speak for other brands obviously, but these downward numbers are not reflected for our CENTUM Franchisees, many of whom showed large increases in funded mortgages in January - some are double over same period 2013.

    Mortgage brokers are resiliant people, and I believe that many are finding ways to better serve the consumer and that is reflected in the results of all brokers, not just CENTUM.

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

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