February 14, 2017

Relocating to Canada: Home Sales, Mortgage Regulations, and Inventory

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Feb

14

Relocating to Canada: Home Sales, Mortgage Regulations, and Inventory

Posted by: Linda Lachapelle, Director, Mobility Solutions

Canadian home sales, while up from November to December, were still down year over year, and it remains to be seen how tightened mortgage regulations, and other indicators, such as lower housing inventory, will impact the market as 2017 progresses. Relocating employees may run into a limited supply of housing in some areas, particularly in lower priced homes. According to statistics released by The Canadian Real Estate Association (CREA), national home sales were up 2.2% month-over month in December 2016.  This comes on the heels of a drop in monthly sales from October to November after tightened mortgage regulations came into effect. Newly listed homes also dropped from November to December.

Highlights of CREA’s recent report include:

  • National home sales rose 2.2% from November to December
  • Actual (not seasonally adjusted) activity in December was down 5% from a year earlier
  • The number of newly listed homes dropped 3% from November to December
  • The MLS® Home Price Index (HPI) in December was up 14.2% year-over-year
  • The national average sale price climbed 3.5% year-over-year in December.

What Does This Mean to Relocating Employees

While the impact of tightened mortgage regulations will vary by region across Canada, it may result in lower sales activity in 2017. With new regulations, and lower supply in some areas, affordability and inventory may impact some relocating employees’ home buying plans.

Additional Resources for Relocation Managers

Please feel free to email me at trustedguidance@cartus.com with any questions on the Canadian market.

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Posted By

Linda Lachapelle

About Linda

Linda is director, mobility solutions working in Canada. She has more than two decades of domestic Canada and global relocation experience, specializing in consultative sales, account management, and strategic market planning.

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