Real Estate Activity Edges up 0.8% in July 2014
The Canadian Real Estate Association (CREA) has released its last month real estate results, reporting a 0.8% increase in number of homes sold, over June 2014. This marks the sixth consecutive monthly increase, along with having the highest home sales total since March 2010. The number of new homes on the market also edged up 0.4% from June 2014 to July 2014.
“On the surface, national sales activity in July was similar to what we saw in May and June,” said CREA President Beth Crosbie. “That said, July sales picked up in markets that struggled to gain traction in the spring, while activity eased slightly in some of Canada’s largest urban markets.”
The actual activity stood 7.2% higher in a year-over-year comparison between July 2013 and July 2014. The national house average also rose 5% using the same year-over-year comparison.
Sales activity were surprisingly led by smaller cities this past month, with Victoria, Winnipeg, London, and Ottawa leading the charge with a 20% gain.
“Low mortgage interest rates continue to bolster home sales activity.” said Gregory Klimp, CREA’s Chief Economist. “With the Bank of Canada widely expected to hold interest rates steady until next year, mortgage financing will remain attractive over the second half of 2014 and continue to support Canadian economic growth while waiting for Canadian exports and investment to improve.”
The listings-to-sales ratio stands at a balanced 53.6% in July 2014, indicating that the real estate market stands in a balanced territory. A balanced territory is defined as being between 40-60%. Anything over 60% indicates a sellers market, while a ratio under 40% indicates a buyers market.