Home sales forecast to rise
Canada’s housing market may well be enjoying a Goldilocks moment: Not too hot, not too cold.
“It’s a balanced and well-behaved market,” Robert Kavcic of BMO Nesbitt Burns said today after the Canadian Real Estate Association released its July sales report and Canada Mortgage and Housing Corp. unveiled its latest forecast.
Today’s report from CREA showed sales inched up in July by 0.2 per cent from June, though were up 9.4 per cent from a year ago.
The national average price rose 8.4 per cent from a year earlier to $382,373, while the Multiple Listings Service home price index, which strips out how regional differences can skew an overall reading, showed a rise of 2.7 per cent over the 12 months.
Sales in Calgary are up almost 19 per cent from a year earlier, in Edmonton almost 24 per cent, and in Toronto almost 13 per cent.
“Note that Toronto’s market balance is right in-line with the decade average, and the MLS HPI has gained some momentum in recent months, now up 3.4 per cent year-over-year (with both the detached and condo segments posting gains).”
Separately today, CMHC said it believes the real estate market is stabilizing, and will pick up steam next year as the jobs market improves along with the economy.
In its new forecast, the housing agency projected resales this year will be about the same those of 2012, and will rise in 2014, while home construction slips this year but picks up next.