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

Terry Keogh, an RDN Transit driver, used his paramedic skills the morning of Jan. 22 after coming across an unconscious woman along his route in downtown Nanaimo. (RDN Transit photo)
RDN Transit driver stops his bus and helps get overdosing woman breathing again

Former EMT from Ireland performed CPR on a woman in downtown Nanaimo on Friday

The intersection at Moilliet Street and Despard Avenue where a 12-year-old boy was struck by an oncoming vehicle early November while crossing at a marked crosswalk. (Mandy Moraes photo)
City staff members, school district officials to discuss high-traffic Parksville intersection

Young boy suffered broken leg after being hit in Despard/Moilliet crossing

U.S. Senator Bernie Sanders sits in on a COVID-19 briefing with Dr. Bonnie Henry, provincial health officer, and Adrian Dix, B.C. minister of health. (Birinder Narang/Twitter)
PHOTOS: Bernie Sanders visits B.C. landmarks through the magic of photo editing

Residents jump on viral trend of photoshopping U.S. senator into images

Nanaimo Regional General Hospital. (News Bulletin file photo)
COVID-19 outbreak declared at Nanaimo hospital

Two staff members and one patient have tested positive, all on the same floor

A long-term care worker receives the Pfizer vaccine at a clinic in Nanaimo earlier this month. (Island Health photo)
All Island seniors in long-term care will be vaccinated by the end of this weekend

Immunization of high-risk population will continue over the next two months

A 75-year-old aircraft has been languishing in a parking lot on the campus of the University of the Fraser Valley, but will soon be moved to the B.C. Aviation Museum. (Paul Henderson/ Chilliwack Progress)
Vintage military aircraft moving from Chilliwack to new home at B.C. Aviation Museum

The challenging move to Vancouver Island will be documented by Discovery Channel film crews

Chartwell Malaspina Care Residence in Nanaimo. (News Bulletin file photo)
Another staff member tests positive for COVID-19 at Nanaimo care home

Chartwell Malaspina Care Residence employee is isolating, says Island Health

Actions of Vancouver Island RCMP emergency response team members prevented a potential head-on collision accident on the Trans-Canada Highway on Jan. 19, says Nanaimo RCMP. (News Bulletin file)
Eight cars evade vehicle driving on wrong side of highway, says Nanaimo RCMP

Incident occurred near Trans-Canada Highway-Morden Road intersection earlier this week

A video posted to social media by Chilliwack resident Rob Iezzi shows a teenager getting kicked in the face after being approached by three suspects on Friday, Jan. 22, 2021. (YouTube/Rob i)
VIDEO: Security cameras capture ‘just one more assault’ near B.C. high school

Third high-school related assault captured by Chilliwack resident’s cameras since beginning of 2021

FILE - In this Feb. 14, 2017, file photo, Oklahoma State Rep. Justin Humphrey prepares to speak at the State Capitol in Oklahoma City. A mythical, ape-like creature that has captured the imagination of adventurers for decades has now become the target of Rep. Justin Humphrey. Humphrey, a Republican House member has introduced a bill that would create a Bigfoot hunting season, He says issuing a state hunting license and tag could help boost tourism. (Steve Gooch/The Oklahoman via AP, File)
Oklahoma lawmaker proposes ‘Bigfoot’ hunting season

A Republican House member has introduced a bill that would create a Bigfoot hunting season

Economic Development and Official Languages Minister Melanie Joly responds to a question in the House of Commons Monday November 23, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Federal minister touts need for new B.C. economic development agency

Last December’s federal economic update promised a stimulus package of about $100 billion this year

Most Read