Canadian Housing Market Report: October 2014

Download the full CREA statistics report for October 2014: here

October 2014 Report Highlights

house• National home sales rose 0.7% from September to October.
• Actual (not seasonally adjusted) activity stood 7% above October 2013 levels.
• The number of newly listed homes rose 0.8% from September to October.
• The Canadian housing market remains balanced.
• The MLS® Home Price Index (HPI) rose 5.5% year-over-year in October.
• The national average sale price rose 7.1% on a year-over-year basis in October.

Bank Commentary

BMO Economics: Calgary prices rose 9.5% y/y, softening somewhat in recent months. Recent weakness in oil prices could suggest that we’ve seen the highs for home price growth in this city for a while. The Bottom Line: It’s still a 3-city show in Canada’s housing market. While price momentum in Calgary might finally be slowing, Vancouver and Toronto continue to strengthen. (Read full commentary here )

TD Economics:  The Canadian housing market received a second wind following the 45 basis point decline in interest rates at the start of this year. However, the impact is expected to fade in the coming months as pent-up demand eases. Interest rate declines of this magnitude have historically boosted sales for up to 6-months and October was that mark. Furthermore, affordability is likely to deteriorate as home prices are still growing at a faster pace than incomes. (Read full commentary here pdf)

RBC Economics: Today’s data offers very little to alter the housing picture that has prevailed in Canada since spring: robust activity in a trio of ‘hot’ markets—namely Calgary, Toronto and Vancouver—continues to overshadow balanced or soft conditions elsewhere in the country. There is also little evidence that this picture is about to change imminently. The hot markets continue to march at the beat of their own drums, supported by favourable demographic and economic factors. (Read full commentary here pdf)

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