Volatility likely in Canadian home sales in near future

Existing home sales in Canada posted a solid growth of 1.8% in November. The Canadian Real Estate Association (CREA) reveals the existing home sales figures are 10.9% higher than the same month of last month.  

Average prices were increased by 10.2% year on year. Likewise, the quality adjusted home price index was increased by 7.1% y/y. A sharp jump in sales activity is expected till to February 15, 2016 in order to avoid the new rules, states CREA.

"The new changes may create some volatility in the market over the near-term.  But, past changes to insured mortgage qualifying rules have proven to be temporary in nature, with the market adjusting within a four to six quarter period", says TD Economics.