The 45 basis point reduction in interest rates at the start of the year has done wonders for real estate in Canada.
The average house price is up 7% and Calgary prices have gone up by nearly double the national rate.
With the October numbers by CREA, the average Canadian home has never been worth more than it is now.
In volume terms, the actual number of homes sold rose by the same amount — seven per cent. “This marks the sixth consecutive month of stronger resale housing activity compared to a quiet start to the year, and the strongest activity for the month of October since 2009,” CREA said in a release.
October isn’t typically one of the strongest months for home buying, as activity tends to be strongest in the spring and summer.
TD Bank said in a note to clients after the CREA numbers were released that in sales terms, the housing market is hotter than it normally is this time of year.
Of course most of these gains are driven by the three cities: Toronto, Vancouver and Calgary.
Will wonders ever cease or this the economic miracle that keeps on giving?