Canadian Home Prices Increase While Total Sales Decrease in January

Canadian Real Estate Association has announced that the overall average home prices have continued to grow in the past month, whereas the total sales have decreased in comparison to the last year. It was discovered that the average national sale price of a home increased by almost two per cent from January 2012 to $354,754 last month, whereas the number of homes sold in January fell by 5.2 per cent in comparison to the year before.

It was further elaborated by the CREA that these variations are caused by tougher mortgage rules, which were put into effect in midway through the last year. Hence, the sales grew by 1.3 per cent from December to January. The president of CREA, Wayne Moen, mentioned in a press release that “national sales activity continues to hold fairly steady at the lower levels first reached when mortgage rules were tightened.” Moen added that “as always, all real estate is local.” Overall, it was estimated that sales have fell in about two-thirds of local markets, with prominent exceptions in Calgary, Edmonton and Winnipeg.

The association’s home price index illustrated that the prices in Calgary have increased by eight per cent over the year, meanwhile the prices in Regina rose by 8.8 per cent. On the other hand, the speedily decreasing housing market in Vancouver has suffered from a so-called “gravitational” effect on national averages. Apart from the sales in the Greater Vancouver area, the average home price rose by 3.3 per cent, while the prices in Vancouver decreased by 2.8 per cent, as per the association’s home price index.

1 Comment

  1. I like that Moen points out what we should all remember – that real estate is local. It’s not accurate to average real estate across an entire country. Look at the indivcomment_IDual market. Conscomment_IDer the GDP, unemployment rate, population growth, and infrastructure investments. These conscomment_IDerations will tell you what you need to know about a market’s viability. Take Calgary real estate for good example – people are investing here because of what these four conscomment_IDerations are telling them.

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