National home sales activity held steady in August, posting a 0.3-per-cent month-over-month increase, reports the Canadian Real Estate Association (CREA). These sales, recorded through MLS systems of real estate boards and associations across the country, have remained level since hitting a five-year high in May.
“August marked the fourth month in a row for strong and stable national sales activity,” said Pauline Aunger, president of CREA, in a press release. “While home prices increased in British Columbia and in the Greater Toronto Area, they have been holding fairly steady in many other parts of the country for some time now.”
“Prices continue to rise in Ontario and British Columbia, where listings are either in short supply or heading in that direction,” said Gregory Klump, chief economist at CREA, in a press release. “August also provided early evidence that modest price growth is re-emerging in some markets in Quebec and New Brunswick. The continuation of low interest rates is supporting home sales and price trends, and is likely to keep doing so for some time.”
Actual (not seasonally adjusted) activity for August 2015 increased by four per cent on a yearly basis, and is the third-highest sales figure for August on record, following 2005 and 2007. This August’s sales activity is also an increase of 6.6 per cent above the 10-year average for the month.
Actual (not seasonally adjusted) sales were up in more than 60 per cent of local markets, led by the Lower Mainland region of British Columbia and the Greater Toronto Area. Calgary showed the largest declines year over year after having a near-record year in 2014.
The number of newly listed homes increased by 0.5 per cent month over month, led by increases in Edmonton and the GTA. The national sales-to-new-listings ratio dropped slightly to 56.7 per cent in August, down from 56.9 per cent in July, indicating a balanced market overall.
The MLS Home Price Index increased by 6.43 per cent year over year in August, up from 5.9 per cent in July and 5.43 per cent in June. Two-storey single-family homes saw the largest year-over-year price gains, at 8.85 per cent, followed by one-storey single-family homes, which saw price gains of 6.09 per cent. Townhouse unit prices were up 4.29 per cent, while apartment unit prices increased 3.08 per cent.
The actual (not seasonally adjusted) national average sale price for homes in August 2015 increased by 8.7 per cent year over year to $433,367, an amount which is skewed by the inclusion of sales activity in Greater Vancouver and Greater Toronto. Excluding those numbers, the year-over-year gain drops to 4.2 per cent, with an average sale price of $338,755.
