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

Just Posted

Sylvan Lake and area residents vent frustration over rural crime

Justice Minister Doug Schweitzer visited Sylvan Lake Thursday as part of a rural crime tour

Sylvan Lake Town Council keep utility rates the same for gas and electricity

Council defeated the motion to increase the ATCO gas rate at the Oct. 15 meeting

Sylvan Lake RCMP arrest man in Fox Run area hit and run

The arrest was made with the help of information provided by alert Sylvan Lakers

Pilot project proposed for Sylvan Lake and Rimbey RCMP

Chief Superintendent Shahin Mehdizadeh spoke about the project at Tuesday’s meeting of council

Town of Sylvan Lake announces new community bus

The CARE-a-van is available for both for-profit and non-profit organizations

VIDEO: Alberta teen found guilty of shooting German tourist, leaving him paralyzed

The boy, who cannot be publicly identified, was from the Stoney Nakoda First Nation

Leaders pour it on with rallies, boosts for candidates as campaign reaches peak

The federal election campaign has reached a crescendo

Not a political question: Thunberg calls for climate action in Alberta

Edmonton police estimated the size of the crowd at about 4,000

Rebels drop third straight against Oil Kings

Rebels have given up 19 goals, scord 2 in three games

Zantac, the over-the-counter heartburn drug, pulled in Canada, U.S.

Health Canada also investigates possible carcinogen in some ranitidine drugs

Greta Thunberg calls for climate action in Alberta, but doesn’t talk oilsands

Swedish teen was met with some oil and gas industry supporters who came in a truck convoy

Scheer denies spreading ‘misinformation’ in predicting unannounced Liberal taxes

Conservative leader had claimed that a potential NDP-Liberal coalition could lead to a hike in GST

Kawhi Leonard, former Toronto Raptor, welcomed back to Vancouver at pre-season game

Fans go wild at pre-season game between L.A. Clippers and Dallas Mavericks at Rogers Arena

Greens and NDP go head to head on West Coast; Scheer takes fight to Bernier

Trudeau turns focus to key ridings outside Toronto after two days in Quebec

Most Read