MNI DATA IMPACT: Vancouver Home Sales Rise Most Since 1993

By Greg Quinn

     OTTAWA (MNI) - Vancouver home sales rose the most since 1993 in July as

average prices fell below the million-dollar mark, based on data released by the

Canadian Real Estate Association Thursday

     Sales rose 26.4% from June in the west coast city, according to the data.

The average price fell to C$967,314 in July from C$1.02 million a year earlier,

or by 5.6% -- still by far the highest among major Canadian cities.

     The sales jump echoes the housing boom in Vancouver and Toronto that led

policy makers to toughen mortgage qualification rules and impose taxes aimed at

curbing speculative purchases. Buyers are coming back as they adjust to last

year's mortgage rule change that hit those hot cities the hardest. Buyers are

also taking advantage of consumer lending rates that are falling along with

global bond yields.

     The Bank of Canada said the national housing market was "stabilizing" in

its last interest-rate statement and shifted more focus to trade tensions.

Policy makers will likely stick to that balance at the Sept. 4 decision given

the prospect of a global slowdown.

     "This can only be described as a solid month for the Canadian housing

market and a stupendous month for Vancouver where conditions have been the most

depressed," Toronto-Dominion Bank senior economist James Marple wrote in a

research note. "We do not expect it to react with undue optimism given the

considerable external challenges."

     The Vancouver gain led a 3.5% increase in nationwide sales in July from

June, the fifth consecutive increase. The average Canadian home price rose 3.9%

in July from a year earlier to C$498,943. Sales in Toronto, Canada's biggest

city, rose 5.1% on the month, the fastest since April.

--MNI Ottawa Bureau; +1 613-314-9647; email: greg.quinn@marketnews.com

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