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
- If you move employees between the U.S. and Canada, read our blog post: Considerations for Relocation Between the U.S. and Canada for common relocations practices in Canada and best practice recommendations.
- For information on how Canadian real estate trends can impact your relocation program, information on important new legislation, and a 2017 outlook, read our post: Moving to Canada: Stable Real Estate Market and Low Interest Rates Prevail.
Please feel free to email me at email@example.com with any questions on the Canadian market.