‘Ottawa’ Canadian Home Sales Set a New Record in April
April turned out to be the best month ever in Canadian real estate with consumers trading 60,952 homes worth $30.4 billion, according to the association that represents the nation’s realtors.
The Ottawa-based Canadian Real Estate Association, which represents boards across the country, said the dollar volume was up 24.8 per cent on a year over year basis. On seasonally adjusted basis, the dollar volume of April sales climbed 3.6 per cent from March.
“With almost three-quarters of all local markets posting sales gains in April, there are plenty of other places where sales are climbing as we head into the busiest time of the year for homebuyers,” said Cliff Iverson, president of CREA, in a release. He believes activity in Toronto and Vancouver has topped out.
Canada’s two most expensive cities for housing continue to have an impact on national average prices which climbed 13.1 per cent in April from a year ago $508,097. Stripped of the Toronto and Vancouver, the average price of a home climbed 8.7 per cent during the same period.
Sales were up in about 70 per cent of the markets surveyed by CREA with the National Capital Region leading the way. Toronto and Vancouver had small declines in activity.
“Supply shortages and tight housing market conditions have become self-reinforcing in the Greater Toronto Area,” said Gregory Klump, chief economist with CREA, in a statement. “The Greater Vancouver Area appears to be heading in that direction too. While significant home price gains may entice some homeowners in these markets to list their home for sale, the issue for many is that the decision to move means they would also be looking to buy while competition for scarce listings is fierce. As a result, many homeowners are deciding to stay put and continue accumulating capital gains. That’s keeping listings off the markets at a time when they are already in short supply.”