National sales had the worst decline in 10 years

by Ephraim Vecina on 28 Jan 2019

Updated numbers from the Canadian Real Estate Association indicated that overall home sales in 2018 fell by 11.1% annually, making this the largest year-over-year drop since the height of the recession in 2008.

This also followed a 4.64% shrinkage in 2017. Earlier this month, the organization warned that the impact of B-20 will continue to reverberate this year, especially apparent in both sales activity and base prices.

CREA predicted that overall sales will fall by another 0.5% in 2019, and average home prices to crawl up by just 1.7% (up to $496,800).

Read more: The biggest real estate stories of 2018

This possibly points to a trend of slowdown that could threaten long-term economic stability with a dangerous chain reaction.

Said vicious cycle might manifest because for every successful home sale, approximately $64,000 in spin-off economic activity arises, by CREA’s estimates.

Moreover, an estimated 3 transactions are already equivalent to the economic activity resulting from 1 new job.

“Spin-off activity is typically general household purchases, furniture and appliances, moving costs, renovations, and professional services (financial, legal, real estate, appraisal, etc.). Those professional services represent nearly half of the spin-off dollar value,” Better Dwelling explained in its analysis of the CREA data.

 

Post a Comment

Most Trending News

The best place to buy a rental property in Canada: 2021
News

You want the biggest bang for your buck so here are the best places in Canada to buy a rental property, and the best types of properties (including vacation homes!).

Read More
Strategies to Predictably, Reliably Grow Your Real Estate Business
News

This 7-day free masters summit will provide you with all the tips and tricks you need to get started in real estate investing, how to expand your real estate portfolio, and much more.

Read More
June virtual conference promises to turn agents into millionaires
News

“The easiest way to prove to people you can help them is to just start helping them, no strings attached,” said Craig Proctor, the master realtor who revolutionized the team concept.

Read More