Canadian Housing Market Report: February 2014

Download the full CREA statistics report for February:  click here pdf

Report Highlights

  • National home sales edged up 0.3% from January to February.
  • Actual (not seasonally adjusted) activity stood 1.9% above February 2013 levels.
  • The number of newly listed homes edged up 0.6% from January to February.
  • The Canadian housing market remains in balanced territory.
  • The national average sale price rose 10.1% on a year-over-year basis in February.
  • The MLS® Home Price Index (HPI) rose 5.1% year-over-year in February.

Bank Commentary

TDTD Economics:  The performance of Canada’s housing market over the last few months is largely reflective of a cooling in Canadian housing demand. Sales are moving at a pace that is neither too hot, nor too cold. A drop in interest rates over the first two months this year (five-year posted rate fell to a record low level) will likely help contribute to a modest pick-up in sales activity in the months ahead, but activity is likely to remain below the robust pace of the last five years.

The only thing that has not happened yet is a slowing in Canadian home price growth – but that too will likely come. For one, home price growth is being support by too few homes for sale in many major markets – giving sellers more of the bargaining power. (Read full commentary)

bmoBMO: Canada’s housing market still looks balanced overall, but conditions vary widely across regions and for even segments within regions. National price momentum has picked up, but gains have not been widespread across markets—and that should provide some solace to policymakers.    Calgary is heating up quickly again, with sales up 14% y/y and the months’ supply across Alberta (3.5) matching the lowest level since 2007. Benchmark prices in the city are up 9.1% y/y, surpassing the 2007 peak, with a strong economy, demographics and tight supply helping. (Read full commentary)

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