The housing market in Canada is on fire with 3 major Canadian cities leading the way. Calgary, Toronto and Vancouver are all booming in regards to housing sales. According to the Canadian Real Estate Association, last month was the best October for home sales since 2009.
The numbers recorded in October 2014 have defied all expectations. Sales went up 7% on a year-over-year basis and 0.7% on a monthly basis. The strongest activity occurred in Calgary, Toronto and Vancouver but conditions were much more subdued in other cities and towns across the country.
Prices also continued to go up with the national average rising 7.1% in October when compared to the prices in October 2013. The home price index went up 5.5%. The average national home price increased to $419,699 last month but if you take the figures from Toronto and Vancouver out of the equation, the average home prices were only at $330,596.
Sales have been higher than the 10 year average and some of the best pricing levels of the decade are being recorded. As well, the market remains balanced overall in Canada with the ratio for sales to new listings remaining at a steady 55.7%. Of course, you have to keep in mind that the housing market in Canada consists of a variety of different markets with wide variances between regions.
Alberta, British Columbia and Ontario continue to report strong sales while the markets in Eastern Canada are may be headed for a soft landing. In British Columbia, many of the markets are seeing signs of recovery and in Alberta, the sales numbers are growing in many towns and cities due to higher than average migration into the province.
In Calgary, home prices went up 9.5% in October, which was a bit lower than what was previously seen in earlier months. Prices rose 6% in Vancouver on a year-over-year basis while in Toronto the prices went up 8.3%.