Average Canadian home prices rose in September to $386,900, an increase of 2% from August and 8.8% from the same month last year. The average price statistic is heavily influence by Canada's large urban markets. If you remove Toronto, Vancouver, and Calgary from the calculation, year-over-year price growth was only 4.8%.
In September, 40,793 homes sold in Canada, up 0.8% from August and 11.5% from the same month last year. Last September's lower-than-normal sales rates were largely due to tightened mortgage regulations and this year's rise has returned the Canadian market back to the 10-year average. "While the momentum for sales activity began improving a few months ago, it may be losing steam after having only just climbed back in line with an average of the past 10 years," says CREA Chief Economist Gregory Klump. "Even so, one can see large year-on-year changes when comparing activity to a month like September 2012, when sales dropped to the lowest level for that month in more than a decade."
In September 72,726 homes were placed on the market according to CREA, down from last month's level of 74,060. With the number of new listings dropping, Canada's inventory level has further tightened, placing the sales-to-new-listings ratio at 56.1%. While the market still remains balanced, it is currently showing a trend toward a seller's market. Canada's housing market has remained in balanced territory since 2010.
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