Existing Home Sales In Canada Reach Record Level in October 2016
18th Nov 2016
Existing home sales in Canada reached a record level in October, 2016 per The Canadian Real Estate Association (CREA).
In a statistics report released November 15th the CREA said there were 42,473 sales in October across the country. It was the most home sales ever in the month of October and a rise in sales from September, 2016 of 2.4%.
The increase in existing home sales occurred despite significant national rule changes made by Ottawa on October 3rd, 2016. Among the rule changes is the new mortgage stress test guidelines making it tougher to qualify for a mortgage loan.
The number of new listings was up 1.7 percent in October 2016 compared to September and were up in 60 percent of all local markets. Nationally, sales-to-new listings is higher at 62.9 percent compared to 62.4 percent in September. The CREA says a sales-to-new listings ratio between 40 and 60 percent is considered healthy.
Another measure of the balance of housing supply and demand is the number of months of inventory. The CREA said there were 4.5 months of inventory nationally at the end of October 2016. It’s the lowest level in almost 7 years.
The number of months of inventory is another important measure of the balance between housing supply and demand. It represents the number of months it would take to completely liquidate current inventories at the current rate of sales activity.
There were 4.5 months of inventory on a national basis at the end of October 2016 – the lowest level in almost 7 years.
The national average price for homes sold in October 2016 was $481,994, up 5.9 percent year-over-year.
Mortgage rates are starting to rise at some of the banks. The Royal Bank of Canada raised some of its mortgage rates in November 2016.
Borrowers with amortizations of 25 years or less at a three-year fixed rate mortgage will pay 2.69 per cent, up 25 basis points. The four-year rate is now 2.79 per cent, up 30 points. The five-year is now 2.94 per cent, up 30 points.
For borrowers with amortizations of more than 25 years the three-year rate is now 2.79, up 35 points. The four-year rate is 2.89, up 40 points. the five-year rate is 3.04 per cent, up 40 points.
Canada Real Estate Association (2016, November 15). Canadian home sales rise in October. Retrieved from http://creastats.crea.ca/natl/index.htm.