A new home is displayed for sale in a new housing development in Ottawa on Tuesday, July 14, 2020. The Canadian Real Estate Association says home sales in September hit another record for the month as they continued to climb higher and prices soared.THE CANADIAN PRESS/Sean Kilpatrick

A new home is displayed for sale in a new housing development in Ottawa on Tuesday, July 14, 2020. The Canadian Real Estate Association says home sales in September hit another record for the month as they continued to climb higher and prices soared.THE CANADIAN PRESS/Sean Kilpatrick

Canada records record home sales for September, up 45.6% from 2019

Actual national average home price in September was a record $604,000

The number of Canadian homes sold last month set a record for the month of September and the national average price soared 17.5 per cent from last year., according to a report Thursday.

There were 45.6 per cent more sales compared with September 2019, the Canadian Real Estate Association said. Compared with August, CREA said home sales were up 0.9 per cent on a seasonally adjusted basis.

The actual national average home price in September was a record $604,000, up 17.5 per cent from September 2019.

“Many Canadian housing markets are continuing to see historically strong levels of activity as we enter into the fall market of this very strange year,” CREA chair Costa Poulopoulos said in a statement.

In addition to a shortage of property listings in a number of regions, there’s been “fierce competition” among buyers, Poulopoulos said.

CREA senior economist Shaun Cathcart said other factors included pent-up demand due to early pandemic-related lockdowns, low interest rates, and government COVID-19 supports.

“But I think another wild card factor to consider, which has no historical precedent, is the value of one’s home during this time. Home has been our workplace, our kids’ schools, the gym, the park and more. Personal space is more important than ever.,” Cathcart said.

Douglas Porter, chief economist for BMO Capital Markets, said September’s price increase wasn’t a fluke as the average gain over the first nine months of 2020 was 11.6 per cent.

But Porter’s commentary concluded by inserting doubt that the “recent sizzling strength” can persist.

“The underlying economic conditions simply do not support such a piping hot market over a sustained period,” Porter wrote.

CREA said the national average price would be about $125,000 lower if sales in Greater Vancouver and the Greater Toronto Area are excluded..

But Porter noted that the MLS Home Price Index, which adjusts for different type of properties sold, has risen 10.3 per cent in the past year.

In September, the MLS HPI was up 1.3 per cent from August.

CREA attributed the modest month-over-month increase in the number of homes sold, compared with August, to declines in the Greater Toronto Area and Montreal.

Those were offset by gains in Ottawa, Greater Vancouver, Vancouver Island, Calgary and Hamilton-Burlington, Ont.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Real estate

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Power outages affected thousands of BC Hydro customers in the north on Jan. 14 (File photo) (File photo)
Power outages affect thousands of BC Hydro customers in northern B.C.

Transmission failure led to outages in Prince Rupert and Port Edward

A Prince Rupert port expansion project received a $25 million investment from the provincial government, the Ministry of Transportation and Infrastructure announced on Jan. 14. Seen here is Ridley Terminals Inc., a coal export terminal in Prince Rupert (Shannon Lough / The Northern View)
$25 million government investment in Prince Rupert port expansion project

Prince Rupert port expansion project expected to create more than 2,200 jobs

For the second time in less than a year, Air Canada announced on Jan. 13 it has suspended flights on the Prince Rupert-Vancouver route as of Jan 17. (Photo by: Jerold Leblanc)
Cessation of flights to YPR will affect the municipal economy and global trade, P.R. Mayor said

Chamber of Commerce said it will aggressively pursue the resumption of flights to Prince Rupert

Air Canada has suspended flights to Prince Rupert Regional Airport due to COVID-19 mitigation, the airline announced on Jan. 13. (Photo:THE CANADIAN PRESS/Darryl Dyck)
YPR is not immune to plummeted air travel demands – 25 jobs lost

Prince Rupert Regional Airport flight cancellation will levee significant hardship - Rick Leach

Air Canada announced on Jan 13, that it is reducing operations by 25 per cent affecting flights into and from Prince Rupert.
Flights to Prince Rupert cancelled

Air Canada announced reduction in operation and more than 1,700 employees affected

A woman wears a face mask and shield to curb the spread of COVID-19 while walking in North Vancouver, B.C., on Wednesday, January 6, 2020. THE CANADIAN PRESS/Darryl Dyck
536 COVID cases, 7 deaths reported as B.C. find its first case of South African variant

Henry said 69,746 people have received their first dose of the COVID vaccine.

Alan Davidson was sentenced to almost six years for abusing seven boys in the late 1970s and early 1990s. (Canadian Press file)
Full parole granted to former Mountie, sports coach convicted of sex abuse of boys

Alan Davidson convicted of abusing boys in B.C. and Saskatchewan in late ’70s, early ’90s

The first COVID-19 vaccine arrives in B.C. in temperature-controlled containers, Dec. 13, 2020. (B.C. government)
More vaccine arrives as B.C. struggles with remote COVID-19 cases

Long-term care homes remain focus for public health

The first Pfizer-BioNTech COVID-19 vaccine dose in Canada is prepared at The Michener Institute in Toronto on Monday, Dec. 14, 2020. THE CANADIAN PRESS/Frank Gunn
Doses of COVID-19 vaccine expected in 60 B.C. First Nations by next week

B.C. has allocated 25,000 doses of COVID-19 vaccine to First Nations for distribution by the end of February

Kamloops-South Thompson MLA Todd Stone questions the NDP government in the B.C. legislature, Feb. 25, 2020. (Hansard TV)
Todd Stone says he’s not running for B.C. Liberal leadership

Kamloops MLA was widely viewed as a front-runner

Wireless voice and data services are out for those on Telus as of Thursday (Jan. 14) afternoon across Western Canada, Telus Support said in a recent Tweet. (Black Press file photo)
UPDATE: Telus services restored across Western Canada

Telus said they are monitoring the situation to ensure connections remain stable

Screenshot from video.
2 students arrested in assault of transgender girl at Lower Mainland school

Mother says daughter was targeted because of how she identifies

Constable Ken Jaques broke a window and crawled into a home to rescue an elderly man who had be laying on the floor for days. Jaques was the officer who provided oversight for the 2020 Remembrance Day services and is shown here in a picture with his son. Photo Andrea DeMeer
Senior who fell and spent days lying on floor of home saved by Princeton cop

He broke the glass and crawled into the house, while calling for assistance from BC Ambulance

Luke Marston works on the seawolf mask for Canucks goalie Braden Holtby. (Mike Wavrecan photo)
B.C. Coast Salish artist designs new mask for Canucks goalie

Braden Holtby’s new mask features artwork by Luke Marston inspired by the legend of the seawolf

Most Read