“Two of Canada’s hottest housing markets look set to stay that way heading into the spring home buying season,” CREA President Pauline Aunger said. “Meanwhile, other major urban markets elsewhere in Canada are well balanced or have ample supply.
Toronto saw home sales increase 14.9% year-over-year and Greater Vancouver area sales increased 25.6%.
South Okanagan (+23.4%) and Fraser Valley (+24.9%) also had impressive increases.
Overall, national sales jumped 0.8% from January to February. Sales increased 18.7% year-over-year.
The trend of ever-increasing home prices in Vancouver and Toronto continued.
“The number of single family home sales above one million dollars is rising in Greater Vancouver and the GTA,” Gregory Klump, CREA’s Chief Economist, said. “Tightened mortgage regulations apply to homes selling above five hundred thousand dollars and below a million dollars. The tighter regulations combined with a short supply of single family homes will restrain transactions below one million dollars.
Luxury homes are expected to drive both those markets, which will impact average home prices, CREA said in a release.
“If recent trends continue, home sales above one million dollars will account for a greater share of activity and will further fuel year-over-year average price increases in these markets,” Klump continued. “Meanwhile, price growth will remain more modest in other housing markets that don’t have an ongoing or developing supply shortage like the kind we’re seeing in the Lower Mainland of British Columbia or around the GTA.”
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Toronto, the Okanagan Region and Fraser Valley are expected to lead the way in terms of home sales. Others, however, are expected to lag behind.