Since October, Canadian home sales have continued their decline on a month-to-month basis according to the December stats released today by the Canadian Real Estate Association (CREA).
Last month, sales were down by 1.8 per cent from November, marking the third straight monthly decline (Tweet this). Sales activity is now 5.3 per cent below the heights reached in September 2013. Actual (not seasonally adjusted) activity was 12.9 per cent higher than the sluggish sales recorded in December 2012.
The number of newly listed homes dropped 4.3 per cent from November to December. By end of month, there were also 6.2 months of inventory at the national level, up from 6.1 months at the end of November. The current level of the months of inventory measure puts the Canadian housing market in balanced territory.
“National sales activity has softened in recent months and is expected in 2014 to remain down from levels reached last September,” said CREA Chief Economist Gregory Klump in the news release.
“That said, absent further mortgage rule changes, sales in 2014 may surpass the annual total for 2013 if demand holds steady near current levels as strengthening economic and better job growth offset the impact of further expected marginal mortgage interest rate increases.”
Regardless of the decrease in sales activity, prices kept climbing: the MLS Home Price Index rose 4.3 per cent from December 2012. The actual (not seasonally adjusted) sale price for a Canadian home rose 10.4 per cent on a year-over-year basis to $389,119 (Tweet this).
Here’s a cross-country look at the ups and downs in sales activity:
- Sales were down on a month-over-month basis in about 60 per cent of all local markets in December: Calgary, Edmonton, and GTA saw decreases while Greater Vancouver, the Fraser Valley, and St. Catherines saw sales increases (Tweet this).
- Year-over-year activity that was not seasonally adjusted showed a slightly different picture with gains in Greater Vancouver, the Fraser Valley, Calgary, Edmonton, Greater Toronto, and Hamilton-Burlington.
- New supply was down in two-thirds of all local markets, with declines in Calgary, Greater Toronto, and Hamilton-Burlington.
- In 2013, a total of 457,893 homes were sold, an 0.8 per cent increase over 2012.
- According to the MLS Home Price Index, Calgary led price year-over-year price growth with an 8.74 per cent increase, followed by the GTA at 6.31 per cent.
For more info, check out the charts from CREA below…