The Dollar Volume Of Canadian Real Estate Sales Off To A Weak Start In 2019

Posted by Michael La Prairie on Tuesday, February 26th, 2019 at 9:36pm.

Canadian real estate sales are off to a weak start in 2019. Canadian Real Estate Association (CREA) numbers show dollar volumes have made a sharp decline in January. The drop makes this month one of the weakest the country has seen in years.

Real Estate Dollar Volume

Dollar volume is a less popular, but very important, indicator to help determine market liquidity. A rise in dollar volume indicates more money, which generally means more liquidity. Falling dollar volumes mean less money, and generally a decline in market liquidity. By itself, it’s hard to actually extract much meaning. Instead you should combine your takeaway with sales, inventory, and prices to get a better overall market picture.

Canadian Real Estate Dollar Volumes Drop Over 9%

Canadian real estate dollar volumes continue to fall. CREA reported $10.9 billion in sales in January, down 9.4% from last year. Compared to January 2017, last month was down 9.33%. The declines actually make it the second weakest sales volume in at least 3 years, the weakest being this past December.

Canadian Real Estate Dollar Volume

The dollar volume of Canadian real estate sales, as reported through the MLS.

Source: CREA, Better Dwelling.

Largest Dollar Volume Declines Are In British Columbia

The biggest gainers from last year were London, Quebec, and Ottawa. London had the highest increase to $201 million in sales in January, up 33.6% from last year. Quebec City followed with $151 million in sales, up 19.5% from last year. Ottawa came in third with $332 million, up 18.4% from last year. These three markets are considered “major,” but all do a relatively small amount of transactions in contrast with the largest markets.

Canadian Real Estate Dollar Volume By Market

The dollar volume of Canadian real estate sales in markets with over a billion in sales, as reported through the MLS.

The largest declines in real estate sales were all located in British Columbia. Fraser Valley was the biggest loser with $481 million in January sales, down 42% compared to the same month last year. Vancouver followed with $1.11 billion, down 41.7% from last year. Victoria came in third, reporting $196 million in sales, down 32.2% from last year.

Toronto was somewhere in the middle in January. Just over $3 billion in sales went through in January, up 1.3% from last year. The number is still negative in real terms, but outperformed the national average. A big change from last year, when it was leading the way lower for many months.

The year is off to a weak start, with dollar volumes dropping off in the first month. Most of the weakness is coming from Western Canada, especially in places that saw a sudden surge in prices over the past few years. However, there is some growth in smaller and cheaper markets.

Continue reading The Dollar Volume Of Canadian Real Estate Sales Off To A Weak Start In 2019 at Better Dwelling website

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