Canadian home sales activity posted its ninth straight monthly gain in November, amid national housing supply plunging to its lowest levels in 12 years.
Latest data from the Canadian Real Estate Association indicated that national home sales grew by 0.6% month-over-month in November, and by 11.3% annually. Compared to the same time last year, housing market activity intensified in nearly all of the largest urban areas.
Meanwhile, the number of new home listings fell by 2.7% from October to November, largely driven by scarcity in most of Ontario, as well as in Quebec and the Maritime provinces.
CREA noted that as of last month, there were just 4.2 months of inventory nationally. This was the lowest since summer 2007.
“The mortgage stress-test doesn't help relieve the ongoing shortage of housing in markets where sales have improved, and it continues to hammer housing demand in markets with ample supply,” CREA president Jason Stephen said.
This is a trend that is likely to make itself felt well into next year, CREA cautioned.
“Home prices look set to continue rising in housing markets where sales are recovering amid an ongoing shortage of supply,” CREA chief economist Gregory Klump explained.
“By the same token, home prices will likely continue trending lower in places where there’s a significant overhang of supply, perpetuated in part by the B-20 mortgage stress-test that continues to sideline homebuyers there.”
The MLS® Home Price Index grew by 0.8% monthly and 2.6% annually in November, while the actual national average sales price went up by 8.4% year-over-year.