Blog by Tomasz Wdowczyk

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Market Report

Ottawa, ON, October 14, 2016 - According to statistics released today by The Canadian Real Estate Association (CREA), national home sales edged slightly higher in September 2016 compared to August.

Highlights:

  • National home sales edged up 0.8% from August to September.
  • Actual (not seasonally adjusted) activity in September rose 4.2% year-over-year
  • The number of newly listed homes ticked up 0.5% from August to September.
  • The MLS® Home Price Index (HPI) in September was up 14.4% year-over-year
  • The national average sale price climbed 9.5% year-over-year

 

The number of homes trading hands via Canadian MLS® Systems rose 0.8 percent month-over-month in September 2016. Having eased in each of the previous four months, national home sales are 5.6 percent below the record set in April 2016.

 

 “The Finance Minister’s recent changes to regulations affecting mortgage lending has added to housing market uncertainty among buyers and sellers,” said CREA President Cliff Iverson. “For first-time home buyers, the stress test for those who need mortgage default insurance will cause them to rethink how much home they can afford to buy.”

“First-time home buyers, particularly in housing markets with a lack of affordable inventory of single family homes, may be priced out of the market by the new regulations that take effect on October 17th,” said Gregory Klump, CREA’s Chief Economist. “First-time home buyers support a cascade of other homes changing hands, making them the linchpin of the housing market. The federal government will no doubt want to monitor the effect of new regulations on the many varied housing markets across Canada and on the economy, particularly given the uncertain outlook for other private sector engines of economic growth.”