On a national basis, the sales-to-new listings ratio went up to 56.7% last month compared to December 2018’s 55.3% – showing that demand is continually outstripping the market’s capacity to provide new supply, according to data released late last week by the Canadian Real Estate Association.
National home sales also went up by 3.6% from December to January, although non-seasonally adjusted activity was down by 4% annually. Sales numbers went up in half of all local markets last month, with the outstanding nodes of activity being Montreal, Ottawa, and Winnipeg.
“Homebuyers are still adapting to tightened mortgage regulations brought in last year,” CREA President Barbara Sukkau said. “However, their impact on homebuyers varies by location, housing type and price segment.”
Meanwhile, the number of newly listed residential properties ticked up by 1% on a monthly basis in January.
Read more: National mortgage growth to hit a lull this year
“Sales, market balance and home price trends are out of synch among major Canadian cities that have the greatest impact on national results,” CREA chief economist Gregory Klump added.
“It’s clear that housing market conditions remain weaker in the Prairie region and the Lower Mainland of British Columbia. Notwithstanding the intended consequences, tighter mortgage regulations that took effect in 2018 combined with previous tightening will weigh on economic growth this year.”
January also saw the MLS® Home Price Index (HPI) increasing by 0.8% year-over-year, although the national average sale price declined by 5.5% during the same period.