Maybe it’s the rebounding economy. Maybe it’s the fact that the Bank of Canada’s interest rate is at a historical low. Or maybe it’s the fact that Canadians are reducing their unsecured debt, and starting to want to take on more good debt, like a mortgage. Whatever the reason, the rise in sales the country saw in July continued through August. And not only did the market remain steady, but it was also the first time in 2011 that Canadian sales, as a whole, pulled ahead those of 2010.
The Canadian Real Estate Assocation released their national sales report today that held very hopeful news for the Canadian housing market. Some of the most interesting points from the report were:
- Sales throughout the country remained stable from July to August
- Year-to-date sales were higher than those at the same time last year in 2010
- Newly listed homes also remained steady from July 2011 to August 2011
- 70% of local Canadian markets remained in balanced and steady territory; this is the highest percentage the Canadian market has ever seen
Although CREA’s report holds good news in just about every sense, it’s the last point that’s one of the most important and points most significantly to the fact that the Canadian housing market remains strong. One of the biggest signs of a balanced markets is the sales to new listing ratio, which the report also showed stood strong at 51.6%, the same as it was last July.
Another landmark, although this one not boding as well, is that there were only 12 buyers’ markets across the country in August 2011; this is the lowest amount that the country has seen this year. Toronto and Ottawa were two of the markets that saw either increased or steady activity, while Calgary, Montreal and Vancouver continue to see a slight decline in their markets.
Gary Morse, president of the CREA, commented on the findings of the report, saying, “The housing market in Canada remained on a firm footing in August when compared to volatile financial markets. Through their actions, homebuyers are showing that they remain confident about the stability of the Canadian housing market.” Morse also went on to say that he believes it is the low interest rate that is encouraging more Canadians to either look for their first mortgage, or trade up with their current home. And with just a quick look at the report, it is clear that more consumers are starting to realize just that, and starting to take to the housing market.
