Resicom – Holiday Investment – 04-21 – LB

Canadian Residential Property Sales Still Rising

Canadian residential property sales increased by 2.1 per cent on average over the month from August to September this year.

The latest data released by the Canadian Real Estate Association (CREA) showed that Canadian residential property sales are continuing to rise, although the growth is way below the 11 per cent recorded in the same period of 2016.

Average Canadian residential property prices also grew over the same period by 2.8 per cent, reaching just over $487,000.

However, this average national property price is greatly influenced by the two ‘hotspot’ areas of Greater Vancouver and Greater Toronto, without which the average property price would be much lower at around $374,500.

As with most property markets, location is key, with around half of all local markets showing monthly sales gains, while others remained stagnant or even fell slightly.

Greater Vancouver and Greater Toronto led the way for sales activity, while the Greater Golden Horseshoe region around Lake Ontario had mixed fortunes dependant on the local area.

CREA president Andrew Peck commented: ‘National sales appear to be stabilizing. While encouraging, it’s too early to tell if this is the beginning of a longer-term trend. The national result continues to be influenced heavily by trends in Toronto and Vancouver but housing market conditions vary widely across Canada.’

Apartments again posted the largest year on year growth in September with a rise of 19.8 per cent, followed by townhouse/row units up 13.5 per cent. Single storey family homes were up 7.9 per cent and two storey family homes up 7.2 per cent.

Although residential property price gains have slowed in the Greater Vancouver and Greater Toronto markets, due to taxes on overseas property investors, property prices remain well above the level of a year ago.

In Ottawa and Greater Montreal meanwhile, annual property price rises of 6.2 per cent and 5.1 per cent respectively mark the largest annual gains since 2010/11, possiblyu reflecting a move by overseas property investors to these regions where the prohibitive 15 per cent tax on foreign buyers is not imposed.

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