Canadian home sales activity is projected to continue decreasing in 2019, reflecting the effects of rising interest rates and strict mortgage stress-test rules.
TL;DR: Canadian real estate sales have significantly dropped across the country, with the exception of Montreal, London Ontario, and Quebec City. National average home prices were also down 4.2% this year. High interest rates and strict mortgage rules are limiting activity in most Canadian markets.
According to CREA’s latest report, national home sales will fall to a nine-year record low next year.
The national average price is projected to rise by 1.7% to $496,800 in 2019.
Canadian real estate sales continue to decline at a rapid pace – sales were down by 15.25% (month-over-month) in November, to a total number or 33,318 transactions. National sales are 12.54%, lower than the same period last year.
In Ontario and Quebec, the association forecasts a rebound. In Alberta and British Columbia, sales are expected to decline.
B.C. and Ontario will lead this year’s decline, and sales will also drop in Alberta, Saskatchewan, Manitoba and Newfoundland and Labrador.
CREA noted that sales in Quebec and in the Maritimes, particularly New Brunswick, were anticipated to remain “historically strong.”
The Quebec City, London Ontario and Montreal markets recorded the largest gains for November. Quebec City saw an 18.2% increase in sales. London’s sales rose by 6.3% compared to last year. Montreal was up 6.1% to 3,630 sales. These were the only major markets to report a gain.
National home price averages were down 4.2% this year, to $488,600.
“While we expect sales activity to stabilize next year… we nevertheless anticipate that prices will slow even further to gains likely below that of inflation.”
Active MLS listings system decreased by 2.3% last month compared to October. The number of new listings also saw a decline, down 3.3% in November.
“The decline in home ownership affordability caused by this year’s new mortgage stress-test remains very much in evidence,” said Gregory Klump, CREA’s chief economist in a statement.
This article, CREA: Canadian Home Sales Dropped Over 12% In November 2018, appeared first on Shupilov News.