The Canadian Real Estate Association says sales activity rose 11.1% compared to August 2012 with prices 2.9% higher. From July, sales rose 2.8%.
The top number is a headline grabber but it’s a story of one-off effects last year that made for the jump.
“Sales activity dropped sharply around this time last year in the wake of tightened mortgage rules and has improved since then, so a sizeable year-over-year increase this August was expected,” said Gregory Klump, CREA’s Chief Economist. “Buyers who put off purchase decisions or who were otherwise sidelined by tighter mortgage rules and lending guidelines implemented last year were anticipated to return to the housing market. That said, the upward trend and levels for activity in recent months has been steeper than expected, but that may not last.”
Remember, these guys are akin to the NAR in the US so they generally have a positive spin on everything. When they make a slightly negative comment, it can be a big negative sign. Still, the Canadian housing bubble won’t pop without a major catalyst.
