Recently, the Canadian Real Estate Association (CREA) released its report of Canadian home sales for January 2014.

Canadian home sales

According to the CREA, January 2014 marked the fifth consecutive month-over-month decline for Canadian home sales. Compared to December 2013, January 2014’s sales numbers fell 3.3%.

Sales numbers were actually down in more than 60% of local markets, with major declines in the Greater Toronto Area, Greater Vancouver, London, St. Thomas, Windsor-Essex, and other areas of Southern Ontario.

The actual (not seasonally adjusted) activity for Canadian home sales in January 2014 was up 0.4% compared to the same time last year. Less than 50% of the local markets experienced gains. British Columbia and Calgary experience significant gains, while Quebec, the East Coast, and Southern Ontario saw declines.

“A number of buyers likely waited out January’s deep freeze before going house hunting, particularly where I’m from in Southern Ontario,” said CREA President Laura Leyser. “It’s a perfect example of how a local influence that may not be shared by other markets can factor into national sales activity. Like the weather, all real estate is local. To see what’s driving the housing market where you live or might like to, your best bet is to talk to your local REALTOR®.”

Canadian home prices

The national price average for homes sold in January 2014 was $388,553, which was a 9.5% increase compared to January 2013.

Year-over-year price gains were lead by two-storey single family homes, followed by one-storey single family homes, then townhomes, and finally, condo apartments.

Calgary saw the biggest gain with the average selling price jumping nearly 9% compared to January 2013. Toronto had the second biggest gain with the average price increasing by more than 7%.

“Canadian housing market performance in January was a weather report of sorts, with January’s Polar Vortex having dented both resale activity and new construction,” said CREA Chief Economist Gregory Klump. “We’ll be keeping a close eye on February’s numbers for signs of a rebound in Southern Ontario, where sales reflected deferred home purchases due to cold weather rather than home buyers getting cold feet.”