Home sales across Canada rose 22% in January from a year ago as expectations for lower interest rates fuels a rebound in the real estate sector.
The Canadian Real Estate Association (CREA) said that January home sales across the country increased 3.7% from December and gained 22% from a year earlier when sales were in steep decline due to rising interest rates.
Lower home prices in major markets across Canada, as well as unseasonably warm weather, also helped to fuel the January sales increase, said CREA.
However, despite the big rise in home sales, January’s numbers were still about 9% below the 10-year average for Canada’s real estate market.
Sales gains in January were most notable in Ontario and British Columbia, with Toronto and Vancouver remaining Canada’s two biggest and most active housing markets.
The average home price in Canada rose 0.6% in January from a year earlier to $717,800, according to CREA.
While still not back to pre-pandemic levels, the housing market appears to be recovering now that interest rates appear to have peaked and are expected to come down later this year.
The average interest rate charged on a home mortgage in Canada is currently at 7.35%, near a historic high.
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