CREA: Canadian Home Sales Continue to Strengthen in May
The Canadian Real Estate Association (CREA) released results for the month of May, with generally positive results. National home sales rose another 3.1% from April 2015 to May 2015. In comparison to May 2014, there was an year-over-year growth of 2.7%. The greatest home activity increase was seen in the Greater Toronto Area (GTA), Calgary, Edmonton, Ottawa, and Montreal. The average sale price of a home was up 8.1% on an year-over-year basis.
“CMHC announced in April that effective June 1 it was hiking mortgage default insurance premiums for homebuyers with less than a 10% down payment, so some buyers may have jumped off the fence and purchased in May to beat the increase,” said CREA President Pauline Aunger. According to Pauline, this is one of the many factors that could have effected sales this past month.
The national sales-to-new listings ratio was 57.6 per cent in May, up from a low of 50.4 per cent in January when it reached its most balanced point since March 2013. The ratio has risen steadily along with sales so far this year as new supply has remained little changed.
A sales-to-new listings ratio between 40 and 60 per cent is generally consistent with balanced housing market conditions, with readings above and below this range indicating sellers’ and buyers’ markets respectively. The ratio was within this range in about half of local housing markets in May. About a third of local markets were above the 60 per cent threshold in May, comprised mostly of markets in and around the Greater Toronto Area and markets in British Columbia.
Below is a table of the average home prices in the following major areas: