Canadian Real Estate Association raises 2019 forecast as August home sales up

Sales were up five per cent, compared with the same month last year

A real estate sold sign hangs in front of a west-end Toronto property. THE CANADIAN PRESS/Graeme Roy

The Canadian Real Estate Association raised its forecast for home sales this year, helped by economic fundamentals and falling mortgage rates.

The improved outlook for the year came as CREA reported home sales in August were up five per cent compared with the same month last year.

The organization said Monday that national home sales are now projected to rise to 482,000 units this year, up five per cent from 2018.

In June, CREA predicted sales to climb 1.2 per cent to 463,000 this year.

“Economic fundamentals underpinning housing activity remain strong outside of the Prairies and Newfoundland and Labrador, the association said.

“More importantly for home buyers and housing markets, longer-term mortgage rates have been declining. Among those that have declined is the Bank of Canada’s benchmark five-year rate used by banks to qualify mortgage applicants.”

Home sales weakened last year after Ottawa tightened mortgage qualification rules at the start of 2018 and mortgage rates started to rise.

However, the rates on fixed-rate mortgages started to decline earlier this year and helped fuel a pick up in home sales.

In August, home sales were up in most of the country’s largest markets, including B.C.’s Lower Mainland, Calgary, Winnipeg, the Greater Toronto Area, Ottawa and Montreal.

READ MORE: Micro-investing in B.C. real estate properties

Robert Kavcic, senior economist at BMO Capital Markets, said a solid job market and population flows persist across much of the country, amplified by a drop in five-year fixed mortgage rates since late-2018.

“Yet again, the housing bears are going to have to take their medicine,” Kavcic wrote in a report. “This momentum should continue into the fall.”

On a month-over-month basis, home sales in August were up 1.4 per cent, the sixth consecutive move higher.

Sales were up in slightly more than half of all local markets, with gains led by Winnipeg and an improvement in B.C.’s Fraser Valley.

The actual national average price for a home sold in August was about $493,500, up almost four per cent from the same month last year.

Excluding the Greater Toronto and Greater Vancouver regions, the national average price was less than $393,000, while the year-over-year gain was 2.7 per cent.

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Cranbrook Bucks add veteran blueliner to defensive corps

A veteran blueliner has joined the Cranbrook Bucks defensive corps. Carson Kurylo… Continue reading

Conservation officers rescue elk calf, take it to wildlife rehab centre

Members with the B.C. Conservation Officer Service recently rescued a dehydrated and… Continue reading

City of Cranbrook, WildSafeBC report uptick in aggressive deer

WildSafeBC says it’s important to ensure that deer don’t make your yard their home

Chernove set to take on epic 1,000 kilometre cycling challenge

A local Paralympian is taking on an epic cycling challenge. Tristen Chernove… Continue reading

From baseball stars to forest fires: Southeast Fire Centre water bomber has an interesting past

Tanker 489 is stationed in Castlegar this year, but in the 1960s it belonged to the L.A. Dodgers.

VIDEO: The Young Blue Jays of Cranbrook

The young blue jays of Ms. B’s backyard, July, 2020, Cranbrook B.C.… Continue reading

Conservationists raise concerns over state of care for grizzly cubs transferred to B.C. zoo

‘Let them be assessed now before their fate is sealed,’ urges B.C. conservationist Barb Murray

B.C.’s COVID-19 job recovery led by tourism, finance minister says

Okanagan a bright spot for in-province visitor economy

National Kitten Day aka the ‘purrfect’ day to foster a new friend

July 10 marks National Kitten Day, a special day to celebrate all things kittens

Lower Mainland YouTubers claim to be Kelowna display toilet ‘poopers’

RCMP can not speak to legitimacy of video, will be investigating

Haida matriarchs occupy ancient villages as fishing lodges reopen to visitors

‘Daughters of the rivers’ say occupation follows two fishing lodges reopening without Haida consent

Conservatives say police should be called into investigate WE charity scandal

Trudeau is already under investigation by the ethics commissioner for potential conflict of interest

Amber Alert continues for missing Quebec girls, 6 and 11, and their father

Police issued the alert for Norah Carpentier, 11, and Romy Carpentier, 6, from Levis, Que.

Limit police access to lethal weapons in Indigenous communities: Justice Summit

Grassroots-organized National Indigenous Justice Summit was a free-to-attend two-day videoconference

Most Read