Canada’s home sales rise in January, easing correction fears
Sales of existing homes in Canada rose in January from December and fell only modestly from a year earlier, suggesting the housing sector’s recent slowdown hasn’t developed into a full-blown correction.
According to recently released statistics from the Canadian Real Estate Association (CREA), home sales were up 1.3% in January when compared with December of 2012. Although the figures show a significant decrease from January figures from the previous year, the month over month increase is welcome news among speculation Canada is heading for a housing crash.
Since the summer of 2012, when mortgage regulations were tightened and home sales started to drop, economists have debated the possibility of a housing crash versus a soft landing. It is the belief that Canadians are adjusting to the changes; real estate agents and Mortgage Brokers alike are reporting a resurgence of first-time buyers to the market. It is expected that if recent sales activity continues in the pattern that has been established, sales declines will diminish once the spring season takes hold.