Home Sales
Sales activity reached the highest level ever for the month of October. National resale housing activity had a record-breaking month with 45,818 units trading hands. This is up 45 percent compared to October 2008 and 74 percent above the decade low reached in January. Low interest rates, coupled with upbeat consumer confidence, continue to release pent-up demand from last year and early this year, boosting national sales activity.
Average Home Price
The national average home price reached new heights in October, rising 21 percent to $341,079 from the same month last year. A sustained increase in sales activity, including a sharp rebound in Canada’s priciest markets, continues to draw the national average home price upward.
Inventory
Sales-to-Listings Ratio
The number of new listings coming onto the market in October declined from year-ago levels for the tenth consecutive month. New listings fell 15 percent from October 2008 but inched up on a month-over-month basis to 65,148 units. According to CREA Chief Economist Gregory Klump, “New listings are still expected to rise in the coming months in response to headline average price increases.” Nationally, there were 4.1 months of inventory in October. The sales-to-listings ratio was 70 percent, signaling a stronger seller’s market.
Mortgage Rates
Average for: 25-Year Amortization, 5-Year Term
A recently released study from the Canadian Association of Accredited Mortgage Professionals shows Canadians are benefiting from the lower interest rates. The average mortgage rate negotiated in the past year was 4.55 percent, down from 5.41 percent a year ago. In October, the 5-year conventional mortgage rate edged down to 5.59 percent, 1.61 percent lower than this time last year.