Canadian property sales enjoy landmark jumpSales of Canadian property have enjoyed a landmark jump in Canada.
Transactions processed through the MLS system increased 5.9 per cent in May 2014, according to the Canadian real estate Association, the biggest month-on-month increase in almost four years.
Sales rose in four out of every five local housing markets in May, including almost all large urban markets. The largest gains driving the national increase were posted in Calgary, Greater Toronto and Montreal.
“The monthly increase in May activity was widespread among local housing markets, with some 80 per cent of them reporting stronger sales compared to April,” said CREA President Beth Crosbie.
Actual (not seasonally adjusted) activity in May stood 4.8 per cent above levels reported in the same month last year, and 3.8 per cent above the 10-year average for the month of May.
“Over the past 25 years, that widespread a monthly sales increase has been recorded only a handful of times. Even so, the improvement varied by location. Your local Realtor is your best source of information about the factors driving the market where you currently live or might like to in the future.”
The national trend for new listings has mirrored the trend for sales in recent months. The number of newly listed homes rose 3.8 per cent in May, marking a fourth straight monthly gain. Also in line with sales activity, new listings were up in about 80 per cent of local markets.
The national sales-to-new listings ratio was 53.1 per cent in May, up from 52.0 per cent in March and April but still well entrenched within the 40 to 60 per cent range that marks balanced market territory.
The national average price continues to be skewed upward by sales activity in Greater Vancouver and Greater Toronto, which are among Canada’s largest and most expensive housing markets. Excluding these two markets from the calculation, the average price reaches a relatively more modest $336,373 while the year-over-year increase shrinks to 5.3 per cent.
“In markets where supply had become tight, we expected sales to improve in tandem with listings,” said Gregory Klump, CREA’s Chief Economist. “Had it not been for such a brutal winter that delayed the launch of the spring market, the improvement in new listings and sales would likely have been more spread out over the past few months.”