Strong home sales in Vancouver, Toronto suggest market stabilizing
Homes were selling at a brisk pace in Vancouver and Toronto last month, while the national average price continued to rise, suggesting Canada’s real estate industry has returned to “average levels” after a decline that began last summer.
Recent results from the Canadian Real Estate Association (CREA) shows an increase in resales of 9.4% compared to the same period in 2012, when new stricter mortgage legislation was introduced.
Gregory Klump, chief economist of CREA, is quoted as saying "Canadian home sales have staged a bit of recovery in recent months after having declined in the wake of tightened mortgage rules and lending guidelines last year, but the numbers for July suggest that national activity is levelling off at what might best be described as average levels".
The average home price came in at $382,373, which is higher than last year's average by 8.4%. A concentrated number of sales in expensive areas such as Vancouver and Toronto is cited for fuelling this increase.