Canadian Housing Market Rebounds

According to the Canadian Real Estate Association report released Friday, the housing resale market for July posted its largest year-over-year gain in two years.
Record sales of existing homes in July hit 50,000 units. A total of 50, 270 homes sold, up 18.2% from the same month last year, and 3.9% above the previous record for July that was set in 2007.

Demand in some of Canada's priciest housing markets:

Gains year-over-year;

• Toronto (28%)
• Vancouver (90%)
• Montreal (19%)
• Calgary (22%)
• Edmonton (28%)
• Is moving prices higher by an average of 7.6% from one year ago to $326,832.00 CAD.

Disclosure: No position.

Comments

[specks:]

I think this is the 'oomph' that finishes wave 5.

Aug 17 02:05 PM

[derryl:]

Cdn homebuyers are bargain hunting. Price expectations have dropped dramatically off their brief pre-May 2007 exponential rise into super-bubble territory and sales are now being made at realistic prices. Many prices are down by $100k and more.

There was probably some pent up demand created by the unaffordable bubble period (when people couldn't buy at those prices) followed by the uncertainty period beginning last September (when people wouldn't buy), and that demand is now being met by significantly more affordable houses. Canada seems to have suffered a mere sideswipe from the US train wreck and Cdns are regaining confidence that the world will not be ending just yet. Cdn banks are willing and able to lend and all's right with the world, it would seem.

Aug 20 12:38 AM