Thursday, May 28th25.9°C
25936

December home sales in Canada down from November, real estate association says

OTTAWA - Canadian home sales were up from a year ago in December, but slid lower compared with the previous month for the third consecutive time, the Canadian Real Estate Association says.

The industry association said Wednesday that the number of sales last month was up 12.9 per cent compared with December 2012, and the national average price was up 10.4 per cent to $389,119.

However the December's sales, through the multiple listing service, were down 1.8 per cent from November, continuing a downward trend that began with CREA's October report.

"Activity has gradually eased back from stronger than expected levels last summer and is now roughly in line with the 10-year monthly average," CREA president Laura Leyser said.

"We'll likely continue getting mixed signals in the months ahead, with positive year-over-year comparisons for sales masking the recent moderation in the monthly sales trend."

For the full year, there were 457,893 homes sold through the MLS system, up eight-tenths of a per cent from 2012.

Economists and policy-makers have been scrutinizing the Canadian housing market for indications of weakness and warning signs of a possible crash.

However, BMO senior economist Robert Kavcic said it was hard to find evidence to suggest anything by a soft landing for the market.

"Look for current balanced conditions and somewhat higher interest rates to lead to steady sales this year, with price growth tucked neatly below the rate of income growth," Kavcic said.

TD economist Diana Petramala noted that some of the weakness in December may have been due to the freezing weather.

"However, higher mortgage interest rates appear to be taking some steam out of home demand, particularly for first time homebuyers," Petramala wrote in a report.

"Five-year mortgage rates have risen by 70 basis points since May. Going forward, a continued increase in longer term interest rates will offset improving economic conditions, helping to keep home sales stable in 2014 and 2015."

While home sales in December were down compared with November on a national basis, roughly 60 per cent of the local markets across the country saw lower sales.

Declines in Calgary, Edmonton and Toronto more than offset gains in Vancouver, the Fraser Valley and St. Catharines, Ont.

Meanwhile, the number of newly listed homes fell 4.3 per cent on a month-over-month basis in December.

The national sales-to-new listings ratio climbed to 55 per cent in December compared to 53.6 per cent in November.

The Canadian Press


Read more Business News

26401


Recent Trending




Today's Market
S&P TSX15107.00-3.47
S&P CDNX692.16+1.54
DJIA18126.12-36.87
Nasdaq5097.98-8.62
S&P 5002120.79-2.69
CDN Dollar0.8042+0.0012
Gold1187.40-16.90
Oil58.46+0.23
Lumber272.60-1.80
Natural Gas2.81-0.01

 
Okanagan Companies
Pacific Safety0.14+0.01
Knighthawk0.010.00
QHR Technologies Inc1.48-0.02
Cantex0.03-0.01
Anavex Life Sciences0.40-0.02
Metalex Ventures0.07-0.01
Russel Metals25.20-0.31
Copper Mountain Mining1.30+0.02
Colorado Resources0.10-0.01
ReliaBrand Inc0.0129-0.0010
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.15-0.00
Decisive Dividend Corporation2.10+0.16

 



26416

FEATURED Property
22495948-588 Harrogate Lane
3 bedrooms 3 baths
$624,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


What's a robo-advisor?

Photo: ContributedIt can only be attributable to human error. -Hal, 2001: A Space Odyssey For most of us who are within thinking distance of retirement, the term “robo” conjures up image...


Cash stressed seniors

Photo: Thinkstock.comFor many Canadian homeowners, their house represents the biggest portion of their net worth. Now, increasing numbers of seniors are starting to recognize the hidden value of their...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...

_



26418

26363


Member of BC Press Council


25895