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

76 new cases of COVID-19 reported Thursday

Active cases at 1,036, 10,713 recovered cases

Wetaskiwin Regional Public Schools receive grant from Indigo Love of Reading Foundation.

WRPS has received $15,975 from the Indigo Love of Reading Foundation.

Leduc RCMP search for man involved in July shooting

Police believe he may be in possession of a firearm and ask the public not to confront him.

Leduc RCMP charge male following assault with a weapon investigation

45-year-old male was in the victim’s home when he stabbed him with a knife.

COVID-19 tests urged for all teachers and school staff

121 new cases Wednesday, active cases up to 1,040

Charges likely in fatal attack at central Alberta medical clinic: RCMP

A vigil was held Monday night to mourn the victim

Ermineskin Cree Nation has a new chief

There were seven challengers to incumbent, including NGCI president

Three people drown at Crescent Falls

Rocky Mountain House RCMP say the incident occurred Tuesday

Feds seeking private consultant to design firearm buyback program

The ban covers some 1,500 models and variants of what the government considers assault-style weapons

Face masks for teachers can impact learning on young children, experts say

Face coverings, mandatory in most indoor public places across the province, can help limit the spread of COVID-19

New Tory leader must build a strong team in Commons and for the campaign: Scheer

Scheer marked his final day in the House of Commons today as leader of the Opposition

Ponoka RCMP lay charges following carjacking

Maskwacis man arrested after brief chase Aug. 8

Man accused of killing Red Deer doctor says he does not remember attack

Appearing before a judge, Deng Mabiour, 54, rambled about being sick and needing a doctor

Deaths feared after train derails amid storms in Scotland

Stonehaven is on the line for passenger trains linking Aberdeen with the cities of Edinburgh and Glasgow

Most Read