The Canadian Real Estate Association released its January national statistics which shows that sales are down by 1.3% month over month. This would be the second lowest monthly result since the fall of 2015.
Activity was down about 50% in all local markets led by the big 3 – Vancouver, Toronto and Montreal.
But interestingly, the number of sales for 2016 was up 1.9%, with sales slowing in the second half of 2016 and this new data shows that this trend continues. Could this be the effect of the new mortgage regulations? Probably!
A major issue is supply shortages too. You can’t have sales if there is nothing to buy. People who are selling are concerned about where they might go so they are holding off. Therefore, we are in a sellers market creating multiple offer situations in many communities. Buyers are faced with the decision to make a firm offer taking major risks or go in using a condition and not getting the house.
Read more from Chief Economist Sherry Cooper, Dominion Lending Centres.