Canadian home sales rise sequentially in September

Canadian home sales rose 0.9 percent sequentially in September. Canadian average home prices also set a record in September, rising 0.4 percent to an all-time high of CAD 604,000. Sales activity came in mixed throughout provinces, with the strongest gains seen in B.C. and Alberta. On the contrary, relatively steep falls were seen in PEI and Manitoba. In the meantime, Ontario recorded a flat activity.

New listings dropped 10.2 percent in September, almost fully reversing August’s strong growth. Therefore, the national sales-to-new listings ratio saw a drum-tight reading of 77.2. Nearly every province was in sellers’ territory in September, underlined by New Brunswick, Quebec, Nova Scotia and B.C. Meanwhile, Ontario’s ratio stood at 79.1. The only provinces not to breach the sellers’ territory threshold were Saskatchewan and Newfoundland and Labrador.

Average prices rose 0.4 percent sequentially in September. The strongest rises were seen in the Atlantic Provinces, capped by a 14.2 percent sequential gain in New Brunswick. A comparatively strong gain was also seen in B.C. On the contrary, Ontario was the only province to see prices fall.

The sales mix played a role in shaping average prices in September. Indeed, compared with the average sale price, the MLS home price index, was up a stronger 1.3 percent month-on-month. Single family home prices rose 1.6 percent, whereas apartment prices were up 0.4 percent sequentially.