Canadian existing home sales rose nearly two per cent in the month of August, marking the seventh consecutive month-over-month increase and the highest level for sales since January 2010.
That’s according to a report released today by the Canadian Real Estate Association, which predicts home sales will rise to 475,000 units in 2014, up 3.8 per cent compared to 2013.
Fueled by increases in Vancouver, Calgary and Toronto, actual home sales for the month stood 2.1 per cent above August 2013 numbers, with the national average sale price jumping 5.3 per cent compared to the same time last year, reaching $398,618.
At the same time, the MLS Home Price Index also rose 5.3 per cent on a year-over-year basis in August. The MLS Home Price Index is considered a more accurate gauge of price trends that is unaffected by changes in the mix of sales activity the way the average price is.
“Listings and sales this spring were deferred due to unseasonably harsh weather, which subsequently supported activity once the delayed spring home buying season got into gear,” said Gregory Klump, CREA’s chief economist.
Klump pointed out, however, that while national activity has yet to lag, sales were down in the majority of local markets across the country, which could be an early indicator that the transitory boost is fading.
But for now, he said, low interest rates will continue to support housing affordability and sales.
The national average home price is expected to rise to $405,000 in 2014, an increase of 5.9 per cent from a year earlier, with similar price rises in British Columbia, Alberta, and Ontario.
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