Real estate activity across Canada does not appear to be slowing down in the new year, as national home sales increased by 2% since December, setting a new record in January.
According to the Canadian Real Estate Association (CREA), non-seasonally adjusted sales activity rose by 35.2% on a year-over-year basis. For the seventh consecutive month, sales activity was up in nearly all housing markets across Canada compared to the same period a year prior.
Likewise, the non-seasonally adjusted national average home price surged to a new record of $621,525 last month, amounting to a 22.8% gain compared to January 2019. Recent supply constraints have been adding further pressure on prices, as the number of newly listed homes fell by 13.3% in January. With home sales on the rise and new supply levels declining, the national sales-to-new listings ratio rose to 90.7%— the highest on record.
According to CREA, there was approximately only 1.9 months of inventory left at the end of January— the lowest reading recorded for that measure. In the meantime, the MLS Home Price Index rose by 13.5% on a year-over-year basis last month, amounting to the largest gain since June 2017.
Information for this briefing was found via the CREA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.