According to a report released last Friday by the Canadian Real Estate Association, national home sales declined by 3.2% from September to October 2013. Year over year, October’s national home sales saw an increase of 8.3% over October of 2012, when sales had declined as a result of federal mortgage rules being tightened earlier that year.
In an article from CTV News, CREA Chief Economist Gregory Klump noted that this dip in sales demonstrates “that the recent sales spurt came largely from homebuyers with pre-approved mortgages jumping into the market”, as many buyers decided to purchase homes before facing potentially increasing interest rates.
CREA’s national home price index also increased 3.52% over October 2012, with the national average price for a home sold in October 2013 at $391,820, an increase of 8.5% from the same period the year before. According to CREA, Toronto, Vancouver, and Calgary are largely responsible for the increase in national home prices.
While some analysts have warned that declining sales show signs of an impending bubble, others believe that the numbers express a slight market correction, and that “the trend will be for a continued calm” on the national level. However, because real estate markets are primarily local, it is always best to speak to an experienced sales representative for details on the market in your city or region.
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