Canada's housing market continues to show signs of stability as the number of homes sold so far this year has come in slightly higher than projected, a possible signal that the market is set for a rebound in 2014, according to the Canadian Real Estate Association.
The industry group representing Canadian realtors reported Monday that although it still expects fewer sales to be logged this year than in 2012, the decline will be smaller than what was predicted in March.
Overall, it forecasts that there will be more sales next year than in 2013 and 2012.
CREA is now estimating that 443,400 units will be sold in 2013, a decline of 2.5 per cent from 454,573 in 2012. It had previously projected a decline of 2.9 per cent from 2012.
The group reported that sales activity began to pick up at the end of the first quarter and accelerated in the second quarter. It projects that 2014 will see a strong rebound, with 464,300 housing units sold -- about 9,700 more than last year.
It said the drop in transactions in the second half of 2012 can be attributed to stricter mortgage rules for lenders and buyers introduced by the federal government last summer.
CREA also reported that last month, there were 51,764 residential properties sold across Canada, down 2.6 per cent from May 2012.
On a month-to-month basis, May showed a 3.6 per cent increase from April with 37,792 units and 36,473 units sold on a seasonally adjusted basis in the first two months of the second quarter the largest month-to-month gain in more than two years.
The association also reported that its home price index was up 2.3 per cent in May, compared with a year earlier. That was slightly better than April's HPI of 2.2 per cent but still near two-year lows.
The May national average price, for all types of property in major markets across Canada, was
Canada which took less of a hit after the bubble seems to be mirroring the US market. While still in decline the curve is not as spark and seems to leveling out.
Read more here.