Relocating to Canada: Home Sales and Prices Continue to Climb
Posted by: Linda Lachapelle, Director, Mobility Solutions
This overview provided courtesy of the Canadian Real Estate Association (CREA) and Coldwell Banker Affiliates of Canada.
Canadian home sales increased for the fifth consecutive month since August, and they continue to climb. Sales in December were likely boosted by a pull-forward of demand as new mortgage regulations came into effect on January 1. According to statistics released by The Canadian Real Estate Association (CREA), national home sales were up 4.5% month-over month in December 2017.
It remains to be seen how tightened mortgage regulations will impact the market in 2018, but according to CREA, economic and job growth are expected to support sales activity despite higher expected interest rates.
Highlights of CREA’s recent report include:
- National home sales rose 4.5% from November to December.
- Actual (not seasonally adjusted) activity was up 4.1% year-over-year.
- The number of newly listed homes rose 3.3% in December.
- The MLS® Home Price Index (HPI) was up 9.1% year-over-year.
- The national average sale price advanced by 5.7% year-over-year.
What Does This Mean to Relocating Employees
As home sales increase, and prices climb, affordability and lower inventory may impact some relocating employees’ home buying plans. Also, under the new 'stress test' regulations, homeowners seeking a mortgage must now qualify based on a higher rate of interest than is currently in place. This is to ensure that homeowners can continue to afford their mortgages after higher interest rates come into effect. Interest rates are also anticipated to increase in 2018.
Additional Information on Trends in Canada
Download Cartus’ Canada Relocation Policy & Practices survey for key trends in Canadian relocation, including flexible policy approaches, support for homeowners, temporary and rotational assignments, and more.
Please feel free to email me at email@example.com with any questions on the Canadian market and how the survey findings apply to your program.