The Canadian Real Estate Association (CREA) released its monthly sales numbers for all of Canada and, although the market has normalized following a sluggish start to the year, the organization foresees a slowed market in the coming months.
“While the momentum for sales activity began improving a few months ago, it may be losing steam after having only just climbed back in line with an average of the past 10 years,” said Gregory Klump, CREA’s Chief Economist. “Even so, one can see large year-on-year changes when comparing activity to a month like September 2012, when sales dropped to the lowest level for that month in more than a decade.”
Specifically, the national average home price reported a slight uptick of 0.8 per cent from August to September and an 8.8 per cent year-over-year rise.
Sales increased on a year-over-year basis in three quarters of Canadian markets, bolstered by increases in British Columbia (43.2 per cent increase), Northwest Territories (23.5 per cent), Alberta (20.8 per cent) and Ontario (18.5 per cent).
“Sales activity across much of the country has improved in recent months following a slow start to the year and new listings in some areas have not kept pace,” said CREA President Laura Leyser. “Depending on where they are, there may be a bit more competition among buyers for limited inventory in the months ahead.”
However, the year-to-date numbers paint a more pessimistic picture, as 10 of the 12 provinces and territories saw a percentage drop in sales activity. Atlantic Canada reported the largest drops with Nova Scotia dropping 13.8 per cent, Prince Edward Island dropping 10.1 per cent and Newfoundland & Labrador dropping 9.9 per cent.