Home sales set new record

Home sales set a record for the month of June, standing 11 per cent above June 2014 and 14 per cent above the 10-year national average for the month, according to the latest figures from the Canadian Real Estate Association.

But the trend is local, said the organization, pointing to increases in Hamilton-Burlington, the Durham region and the Greater Toronto Area, and decreases in Ottawa and Montreal.

“Low interest rates are helping sales activity set new records in and around the Greater Toronto Area, which is boosting national sales activity,” said Gregory Klump, CREA’s chief economist.

“Those records would be even higher were it not for an ongoing shortage of listings for single-family homes in the area. The combination of strong demand and a shortage of listings are continuing to fuel single-family home price increases.”

Sales were up on a year-over-year basis in around two-thirds of all local markets, led by activity in the Lower Mainland of B.C., Greater Toronto, and Hamilton-Burlington.

The actual national average price for homes sold in June 2015 was $453,560, up 9.6 per cent on a year-over-year basis.

However, this figure continues to be distorted by sales activity in Greater Vancouver and Greater Toronto, which are among Canada’s most active and expensive housing markets.

If these two markets are excluded from calculations, the average is a more modest $346,904 and the year-over-year gain is reduced to 3.1 per cent.