CTVNews.ca Staff
Published Wednesday, Aug. 15, 2012 10:17AM EDT
Last Updated Wednesday, Aug. 15, 2012 11:10AM EDT
Home sales held steady in July as national home prices declined, according to the latest data released by the Canadian Real Estate Association.
Sales were down just 0.01 per cent in July compared with June, although non-seasonally adjusted sales were up 3.3 per cent last month compared with July 2011, CREA said on Wednesday.
The association reported that national average prices fell 2 per cent to $353,147 compared with the same month a year earlier.
The report shows home prices are off their peak in hot real estate markets, with month-over-month prices down 0.46 per cent in Montreal, 0.33 per cent in Greater Toronto and 0.74 per cent in Greater Vancouver.
However, CREA said housing slowdowns in Toronto, Newfoundland and Labrador and Edmonton were offset by higher home sales in Calgary, Kingston, Ont. and Chilliwack B.C.
The association said recent changes to Canadian mortgage regulations, which include lowering the maximum amortization period down to 25 years from the previous 30 years and limiting home equity loans to a maximum of 80 per cent of a property’s value, were expected to temper home sales and prices in Toronto and Vancouver.
“The data released today confirms that,” Wayne Moen, CREA President, said in a news release.
“Even so, sales and price trends can be very different from one market to the next, and run counter to national trends,” he added.
Shortened amortization periods means some first-time home buyers could have difficulty qualifying for a mortgage, which could have a ripple effect across the housing market, said CREA’s chief economist Gregory Klump.
“It will likely take more time for move-up buyers to sell their current home,” said Klump.
The number of newly listed homes fell 3.3 per cent in July compared to June, with declines in more than half of all local markets including Montreal, Toronto, Vancouver, the Fraser Valley, Calgary, and Edmonton.
However, the association reports that the national housing market is balanced with stable sales and fewer new listings.
