National home sales fall to lowest level in five years

The Canadian Real Estate Association said national home sales sank 13.9 per cent year-over-year to the lowest level in more than five years in April, just as the number of newly-listed homes fell to a nine-year low for the month.

The decreases amount to a 2.9 per cent drop in sales between March and April, bringing the total to 36,297. During that same time listings fell to 67,616, taking a 4.8 per cent hit -a sign that the flurry of activity that usually kicks off the spring real estate market has failed to materialize.

CREA attributed the subdued level of activity to the stricter regulations for uninsured mortgages that the Office of the Superintendent of Financial Institutions introduced on Jan. 1. Its president Barb Sukkau said the regulations have “cast its shadow over sales activity,” while its chief economist blamed them for having “destabilized market balance for housing markets in Alberta, Saskatchewan and Newfoundland.”

CREA said 60 per cent of all local markets were balanced in April, but that sales were down in 60 per cent of all markets, led by the Fraser Valley, Calgary, Ottawa and Montreal.

Similarly, activity was below year-ago levels in about 60 per cent of all markets, which was “overwhelmingly” led by B.C.’S lower mainland and markets in and around Ontario’s Greater Golden Horseshoe region.

CREA also said the country has experienced a decrease in the non-seasonally adjusted national average sale price, which dropped by 11.3 per cent year-over-year last month to just over $495,000.