Canadian Real Estate Association raises 2019 forecast as August home sales up

Sales were up five per cent, compared with the same month last year

A real estate sold sign hangs in front of a west-end Toronto property. THE CANADIAN PRESS/Graeme Roy

The Canadian Real Estate Association raised its forecast for home sales this year, helped by economic fundamentals and falling mortgage rates.

The improved outlook for the year came as CREA reported home sales in August were up five per cent compared with the same month last year.

The organization said Monday that national home sales are now projected to rise to 482,000 units this year, up five per cent from 2018.

In June, CREA predicted sales to climb 1.2 per cent to 463,000 this year.

“Economic fundamentals underpinning housing activity remain strong outside of the Prairies and Newfoundland and Labrador, the association said.

“More importantly for home buyers and housing markets, longer-term mortgage rates have been declining. Among those that have declined is the Bank of Canada’s benchmark five-year rate used by banks to qualify mortgage applicants.”

Home sales weakened last year after Ottawa tightened mortgage qualification rules at the start of 2018 and mortgage rates started to rise.

However, the rates on fixed-rate mortgages started to decline earlier this year and helped fuel a pick up in home sales.

In August, home sales were up in most of the country’s largest markets, including B.C.’s Lower Mainland, Calgary, Winnipeg, the Greater Toronto Area, Ottawa and Montreal.

READ MORE: Micro-investing in B.C. real estate properties

Robert Kavcic, senior economist at BMO Capital Markets, said a solid job market and population flows persist across much of the country, amplified by a drop in five-year fixed mortgage rates since late-2018.

“Yet again, the housing bears are going to have to take their medicine,” Kavcic wrote in a report. “This momentum should continue into the fall.”

On a month-over-month basis, home sales in August were up 1.4 per cent, the sixth consecutive move higher.

Sales were up in slightly more than half of all local markets, with gains led by Winnipeg and an improvement in B.C.’s Fraser Valley.

The actual national average price for a home sold in August was about $493,500, up almost four per cent from the same month last year.

Excluding the Greater Toronto and Greater Vancouver regions, the national average price was less than $393,000, while the year-over-year gain was 2.7 per cent.

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Southern resident orca L41 considered missing and feared dead

The orca was last spotted in Aug. 2019 when photographed in western Strait of Juan de Fuca

West Shore Pickleball Association serves up idea for View Royal tennis court

‘We don’t have a place to call home’, says avid pickleball member

The Goldstream News Gazette office is on the move

We’re returning to our roots, just a few blocks away on Goldstream Avenue

Indigenous youth arrested during 15-hour occupation to hold press conference Wednesday morning

The speakers are expected to condemn police, RCMP actions towards Indigenous people

VIDEO: Saanich family competes on first season of ‘Family Feud Canada’

Charania family will face off against the Torres family from Hamilton, Ont.

B.C. reports first coronavirus in Vancouver region

First patient visited Wuhan, China, reported symptoms

Greater Victoria’s wanted list for the week of Jan. 28

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

POLL: Are you concerned about the coronavirus?

The coronavirus which has sparked concern around the globe has now arrived… Continue reading

Off-duty Nanaimo Mountie takes down would-be ice cream thief

Suspect attempted to steal Dilly Bars from Dairy Queen location on Sunday

Nanaimo man hit with pole in dispute over off-leash dog

RCMP say no charges recommended at this time

Was there a tornado on Vancouver Island Monday?

Suspected phone app glitch gives eerie warning

Work has started on Malahat Skywalk, expected completion in 2021

$15-million project expected to open in spring, 2021

B.C. reports first coronavirus in Vancouver region

First patient visited Wuhan, China, reported symptoms

Sooke Minor Fastball to host coaching clinic

Clinic ideal for those planning to coach U6 to U18 teams

Most Read