Tougher mortgage regulations are continuing to decrease purchasing power and slow down sales, according to CREA’s latest national real estate report.
Sales activity fell in half of all Canadian markets in September, dropping 0.4% between August and September. Sales are 8.9% lower than they were in September last year.
Meanwhile, new listings rose by 3% nationally.
Markets in Edmonton, Vancouver Island, and parts of Ontario’s Greater Golden Horseshoe experienced large declines, moving softly into buyer’s market territory.
Montreal and BC’s Fraser Valley were the only two areas reporting booming sales.
The national home price average remained moderately flat at $487,000, a 0.2% increase month over month, and 2.3% y-o-y.
Buyer’s or seller’s market: conditions vary by province
From a national perspective, the market is balanced with a sales-to-new-listings ratio of 54.4 per cent.
However conditions vary throughout the nation.
“The balance between the number of home buyers and suitable homes varies depending on location, housing type and price range,” said CREA President Barb Sukkau. “Differences in market balance will likely come into sharper focus as interest rates rise and cause this year’s new mortgage stress-test to become even more restrictive. A professional REALTOR® is your best source for information and guidance in negotiating a purchase or sale of a home during these changing times,” said Sukkau.
Sales by property type
The condominium market recorded the largest year over year gains in September, a 8.4% increase.
Townhouses followed at 4.5%.
One storey detached homes remained flat while two storey homes fell by -0.3%.
Statistics in Montreal
Home prices rose by 6.1% in Greater Montreal (led by a 7% increase in townhouse/row unit prices).
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