Home sales rose nationally in Canada by 1.3% from July to August and the average price increased by 3.6% compared to the same month in 2016, the latest index shows.

However, sales are down by 9.9% compared with August last year and the number of newly listed homes fell a further 3.9% month on month, the data from the Canadian Real Estate Association (CREA) also shows.

There was a roughly even split between the number of local markets where sales posted a monthly increase and those where activity declined. The monthly rebound in Greater Toronto Area (GTA) of 14.3% month on month sales fuelled the national increase.

However, when GTA is excluded from the calculation sales activity was flat. While it was the first monthly increase in activity since Ontario’s fair housing policy was announced, GTA sales activity remained well down compared to the peak reached in March, down 36%, and down 32% compared to a year ago.

‘Experience shows that home buyers watch mortgage rates carefully and that recent interest rate increases will prompt some to make an offer before rates move higher, while moving others to the side lines,’ said CREA president Andrew Peck.

While benchmark home prices were up from year ago levels in 12 of 13 housing markets tracked by the index, price trends continued to vary widely by region.

After having dipped in the second half of last year, benchmark home prices in the Lower Mainland of British Columbia have recovered and are now at new highs with Greater Vancouver up 9.4% and Fraser Valley up 14.8%.

Benchmark home price increases have slowed to about 16% on a year on year basis in Victoria, and are still running at about 20% elsewhere on Vancouver Island.

Price gains slowed further year on year in Greater Toronto, Oakville-Milton and Guelph but prices in those markets remain well above year ago levels, up 14.3%, 11.4% and 19.5% year on year respectively.

Calgary benchmark price growth remained in positive territory up 0.8% year on year while Regina home prices were up 5.6% year on year but in Saskatoon home prices were down 0.3%. But the index report says that prices have been trending higher in both Regina and Saskatoon and if recent trends hold, Saskatoon prices will also turn positive on a year on year basis before the end of the year.

Benchmark home price growth accelerated in Ottawa with growth of 5.9% year on year and was up in Greater Montreal by 4.6%, and up by 5.1% overall in Greater Moncton.

The actual (not seasonally adjusted) national average price for homes sold in August 2017 was $472,247, up 3.6% year on year but the report points out that the national average price is heavily skewed by sales in Greater Vancouver and Greater Toronto, two of Canada’s most active and expensive markets. Excluding these two markets from calculations trims almost $100,000 from the national average price to $373,859.

Homes Sales Crept Up in Canada by 1.3% in August, But are Well Down on A Year Ago by Property Wire