Zoocasa
Sold Prices
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Home Real Estate News

Canadian January 2017 Home Sales Down Slightly: CREA

Penelope Graham by Penelope Graham
February 15, 2017
in Real Estate News, Toronto Real Estate, Vancouver Real Estate
Reading Time: 3 mins read
Canadian January 2017 Home Sales
Share11
Tweet
Share
11 Shares

The number of Canadian real estate sales declined by 1.3% last month, and were down in half of all local markets – but don’t blame it on a lack of interested buyers, reports the Canadian Real Estate Association.

CREA’s January numbers reveal sales have dipped to the second lowest monthly level since Fall 2015, hovering just slightly higher than in November, when the CMHC’s new mortgage stress test took effect.

Supply Cramping Housing Market Growth

One of the biggest issues, says Chief Economist Gregory Klump, is that there just aren’t enough homes coming to market to satisfy demand; newly-listed homes were down 6.7% month over month across the nation.

“The shortage of homes available for sale has become more severe in some cities, particularly in and around Toronto and in parts of BC,” he stated in CREA’s release. “Unless sales activity drops dramatically, the outlook for home prices remains strong in places that face a continuing supply shortage.”

The number of months it would take to completely deplete available housing for sale – a measure used by CREA to monitor demand – is at a six-year low, at 4.6 months. And in too-hot-too-handle markets like the Greater Toronto Area and Golden Horseshoe, it’s as tight as one month or less.

Still a Sellers’ Market

While a slowdown in sales can indicate improving conditions for buyers, that’s not the case here, according to the report – because the lack of supply surpassed sales declines, Canada remains firmly a sellers’ market, with a national sales-to-new-listings ratio of 67.7%, up from 64% in January. A market with a range of 40 – 60% is considered to be balanced, while any ratio below that is considered a buyers’ market.  Not surprisingly, the majority of above-60% ratios can be found in British Columbia and in Southwestern Ontario, reports CREA.

These declines are month-to-month and show what could be the start of a longer-term trend. On an annual basis, sales actually rose slightly in two thirds of markets including the GTA, Calgary, Edmonton, London, St. Thomas, and Montreal.

However, they are down “significantly” in the Lower Mainland area of British Columbia, indicative the region is still possibly grappling with fewer foreign investors, fallout from unsustainable prices, and from new mortgage rules which could be disqualifying more first time buyers from entering the market. Despite the slowdown, though, prices had grown so aggressively in the area, that they’re still well above last year’s levels, up 24.9% and 15.6% in the Fraser Valley and Greater Vancouver region, respectively.

New Mortgage Rules Could Be Factor

In fact, according to CREA President Cliff Iverson, these new mortgage rules, which require those paying less than 20% down on their homes to qualify at a rate of 4.64% for their mortgage – could also play a part in the sales downturn. “Canadian home buyers face some challenges this year including new mortgage rules that make it harder to qualify for a mortgage and regulatory changes that will push up mortgage financing costs,” he stated. “It will take some time to gauge the extent to which these challenges will weigh on home buyers in different housing markets across Canada.”

Prices Driven By Toronto and Vancouver

According to CREA, the new average home price (for all markets across Canada) rose just 0.2% year over year, to $470,253. If that seems low, consider that much of the growth can be attributed to steep price increases in the GTA and Greater Vancouver markets; excluding them, the average price would be $351,998.

Southern Ontario – and particularly the Golden Horseshoe market (Hamilton real estate, Oakville-Milton, Guelph, Kitchener-Waterloo, Cambridge, Brantford and the GTA) experienced demand “without precedent”.

Related Read: Hamilton Real Estate to be Hottest Market in 2017: Re/Max

Prices surged the most for two-storey houses, at 16.8%, followed by townhouses and rowhouses at 15.8%, one-storey houses at 14.4%, and condo / apartments at 13.3%. Benchmark home prices rose in 10 of 13 markets.

According to the report, prices also fluctuated in the following markets:

  • Calgary: +2.9%
  • Saskatoon: -1%
  • Regina: +3.8%
  • Ottawa: +3.7%
  • Montreal: +3.1%
  • Greater Moncton: -0.2%

Check out Zoocasa’s infographic before to see how market prices and sales changed across Canada last month:

Hot or Not Markets: CREA

 

Previous Post

Why Buyers and Sellers Should Beware Kitec Plumbing

Next Post

Boom and Bust: What’s Next for Calgary Real Estate?

Penelope Graham

Penelope Graham

Penelope Graham is the Managing Editor at Zoocasa, and has over a decade of experience covering real estate, mortgage, and personal finance topics. Her commentary on the housing market is frequently featured on both national and local media outlets including BNN Bloomberg, CBC, The Toronto Star, National Post, and The Huffington Post. When not keeping an eye on Toronto's hot housing market, she can be found brunching in one of the city's many vibrant neighbourhoods, travelling abroad, or in the dance studio.

Related Posts

Toronto Real Estate

Longer Days, Slower Sales as June Market Offers Buyer Advantage: TRREB

July 7, 2025
Alberta

Breaking Ground: Alberta’s Clear Advantage in New Home Construction

June 30, 2025
Just for Fun

These Are the Toronto Patios Locals Swear By for Summer Cocktails

June 27, 2025

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

A blue sofa in a room featuring a white wall and blue accent walls, creating a cohesive color scheme.

Design Trends 10 Years Ago: What Defined Mid-2010s Homes 

July 11, 2025

6 Best Cities for Affordable Luxury Homes in Canada Under $1M

July 10, 2025
Windsor, ON city skyline

10 Years of Rising Mortgage Payments: The Canadian Cities Hit Hardest

July 9, 2025
A person holds a paint sample while standing in front of a ladder, preparing for a painting project.

Pantone Colour of the Year: What the Last Decade Looked Like

July 8, 2025

Featured Listings

6 Best Cities for Affordable Luxury Homes in Canada Under $1M

July 10, 2025

5 Canadian Cottage Regions That Make the Perfect U.S. Buyer Getaway 

June 15, 2025

From Skyline Views to Private Escapes: 5 Luxe Calgary Homes for Sale

June 10, 2025

What it Means When a Home is Listed for $1

June 7, 2025
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Stay Connected

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.