Close X
Wednesday, December 4, 2024
ADVT 
National

Home Sales Rebounded In December Following Large Drop In November: CREA

16 Jan, 2017 12:32 PM
  • Home Sales Rebounded In December Following Large Drop In November: CREA
TORONTO — Home sales are not going to be as big of a boost to the Canadian economy this year as they were in 2016, the Canadian Real Estate Association said Monday as it released its latest batch of figures.
 
The real estate association says home sales were up 2.2 per cent in December from the previous month, rebounding partially from a big drop following the introduction of new mortgage rules.
 
The number of homes trading hands posted the biggest monthly retreat in more than four years from October to November, CREA said.
 
"New regulations mean that in order to qualify for a mortgage, home buyers will either have to save longer for a bigger down payment or purchase a lower priced home," CREA's chief economist Gregory Klump said in a statement.
 
"In urban centres where the latter are in short supply, that's likely to translate into fewer sales."
 
Ottawa moved to tighten mortgage rules in October, including requiring that all insured mortgages undergo a stress test to determine whether borrowers are still able to make mortgage payments if interest rates rise or their income declines.
 
Such tests were previously not required for fixed-rate mortgages longer than five years.
 
TD economist Diana Petramala says it will take some before the full impact of the changes materialize.
 
"Even though the mortgage regulations have already kicked in, they do not apply to those who had a pre-approved mortgage prior to the Oct. 1 implementation date," Petramala said. 
 
"As such, the effect may not be fully felt until January."
 
 
Residential construction contributed seven per cent of Canada's GDP last year, according to BMO economist Robert Kavcic.
 
While final figures for the full year are not yet available, Kavcic says the real estate industry as a whole contributed roughly 12 per cent of GDP.
 
That figure is likely to be lower in the year ahead, he predicts.
 
"One of the big contributors has been Vancouver, and just through the last four or five months the market there has already started to correct," said Kavcic.
 
On a year-over-year basis, CREA says home sales were down five per cent last month compared to December 2015, when they reached the highest level ever for that month.
 
Annually, the number of homes that changed hands was up 6.3 per cent last year compared with 2015, as sales started out strong before softening in the latter part of the year.
 
The real estate association says the MLS home price index in December was up 14.3 per cent compared with a year ago, while the national average sale price climbed 3.5 per cent year-over-year.
 
Supply continued to tighten, with new listings down in more than half of all local markets.
 
 
CREA said the number of homes newly listed for sale slipped three per cent from November to December, with B.C.'s Lower Mainland, Calgary and the Greater Toronto Area seeing the biggest declines.

MORE National ARTICLES

Drug Thought To Be Fentanyl Was More Deadly Carfentanil, Hamilton Police Say

Drug Thought To Be Fentanyl Was More Deadly Carfentanil, Hamilton Police Say
Officers seized the drug on Nov. 5 after the person who had the bottle turned it over to police, saying they were aware of the dangers of liquid fentanyl.

Drug Thought To Be Fentanyl Was More Deadly Carfentanil, Hamilton Police Say

Nova Scotia's Annapolis Valley Senior Hiker Allegedly Sexually Assaulted By Teen On Public Trail

KINGSTON, N.S. — A 14-year-old boy has been charged with sexually assaulting an 80-year-old woman while she was walking on a public trail in Nova Scotia's Annapolis Valley. 

Nova Scotia's Annapolis Valley Senior Hiker Allegedly Sexually Assaulted By Teen On Public Trail

Marmora, Ont., Man Found Guilty Of Cruelty To A Squirrel, Fined $1,000

 A 34-year-old Marmora, Ont., man has been found guilty of animal cruelty after leaving a squirrel in a cage under the hot sun this past summer.

Marmora, Ont., Man Found Guilty Of Cruelty To A Squirrel, Fined $1,000

'We Are Not Going To Be Silent': Canadian Women Join March On Washington, D.C.

'We Are Not Going To Be Silent': Canadian Women Join March On Washington, D.C.
Before this year's American election, Tina Woodland had never protested anything in her life. But when she heard that thousands of women were planning to march on the U.S. capital the day after Donald Trump's inauguration, the Yukon resident knew she had to join in.

'We Are Not Going To Be Silent': Canadian Women Join March On Washington, D.C.

Former Catholic Teacher Sues Over Alleged Sexual Assaults By Priest

Former Catholic Teacher Sues Over Alleged Sexual Assaults By Priest
The woman alleges in a notice of civil claim that she sought psychological and spiritual advice and counselling from Rev. Erlindo Molon soon after she began teaching at Our Lady of Perpetual Help.

Former Catholic Teacher Sues Over Alleged Sexual Assaults By Priest

College In Canada? After Trump's Win, More Students In The US Consider It

College In Canada? After Trump's Win, More Students In The US Consider It
For some college-bound students distressed by the election of Donald Trump, Canada is calling.

College In Canada? After Trump's Win, More Students In The US Consider It