The Canadian Real Estate Association, or CREA has said in November that the home sales had gone up by 11.3% compared to what it was about a year ago. The CREA has also noted that 37, 213 homes were sold though the MLS System that was an increase from the 33,437 in November 2018. This increase in the sales has happened after the national average price for the home sold in November was about $529,000 which was an increase of 8.4% compared to the numbers a year ago. By keeping out the markets of Greater Toronto and Greater Vancouver, the average price has gone up by 6.9% and was now around $404,000.
The Association has said that the home sales are going to be around 486,800 and the national average price is increasing steadily at 2.3%. An earlier forecast had said that the home sales would be around 482,000 for 2019 and there would be an increase of national average price by 0.5%. For 2020, the CREA expects the home sales to rise by 8.9% next year and come around 530,000 and the national average price is expected to rise 6.2% to $531,000.
Other pointers worth noting
The number of home sales on the national level rose by 11.3% in November when compared to a year ago but the picture has significantly changed from region to region, according to CREA. The Greater Vancouver Area had seen a continued growth in Greater Toronto and Montreal regions which saw significantly more sales while the Prairie cities of Calgary, Edmonton and Regina saw the markets declining. In all, about 37,213 homes were sold through the MLS system of CREA which was an increase from the number of 33,437 in November 2018.
The increase in sales was noted as the national average price for a home sold in November was about $ 529, 000 which was an increase by 8.4% as compared to a year ago. If the Greater Toronto Area and Greater Vancouver are excluded, then the average price comes to $ 404,000 which is an increase of 6.9% as compared to last year. The MLS home index on the other hand, rose by 2.6% year over year to $638,300.
Major market trends to be kept in mind
Regional variances were also seen in price gains with Greater Vancouver benchmark price seeing a decline to 4.59% from a year ago while Prairie home prices also saw a decline. In comparison, Greater Toronto and Greater Montreal saw price increase by 6.52% and 8.72% respectively while on Ottawa the increase was by 11.45%. Sales had also continued to show improvement in some regions, while not in others as the President of CREA had said in a statement. In an updated report, CREA also said that the expected home sales this year is going to be around 486,800 and that the national average is on track at 2.3%.
When compared to the earlier forecast for 482,000 home sales for 2019, there has been a 0.5% increase in the national average price. The prices of newly listed homes rose by 2.7%. As of now, there is 4.2 months worth of inventory and this is the lowest recorded since the summer of 2007. This is well below the average of 5.3 months which is what it would take to liquidate the current inventory at the current sale activity.
CREA says that for 2020, the home sales are going to increase by 8.9% next year to 530,000 and the national average price forecast will rise 6.2% to $ 531,000. The rising sales would be a result of more jobs, population growth and also a boost in some government programs for first time home buyers though some caution is to be maintained. All of this will work of the financial conditions remain accommodative and it is expected that the 55.9% jump in home sales in Greater Vancouver Area would sustain the growth for the fourth quarter as well.