Canada’s Real Estate Market Is in Full Recovery Mode

(Bloomberg) -- Canada’s realtors produced another strong month of sales and prices in September, with gains in most major markets in a sign of strength for the nation’s housing market.

The number of units sold rose 0.6% last month, extending a recent increase in activity that has seen transactions jump 16% from a year ago, the Canadian Real Estate Association said Tuesday. Benchmark home prices rose 0.5% in September, and are up 2.3% over the past four months. Markets in British Columbia led gains in both sales and prices last month, with the country’s oil-producing regions the only ones showing any weakness.

The report is in line with other recent indicators that suggest housing has fully recovered from a slump earlier this year, helped by falling mortgage rates. The run of robust housing data gives the Bank of Canada another reason -- along with strong job gains -- to hold interest rates steady, even as counterparts around the world tilt toward easing policy.

“Home sales activity and prices are improving after having weakened significantly in a number of housing markets,” Gregory Klump, chief economist at the Ottawa-based realtor group, said in a statement. “How long the current rebound continues depends on economic growth, which is being subdued by trade and business investment uncertainties.”

--With assistance from Erik Hertzberg.

To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net

To contact the editors responsible for this story: Theophilos Argitis at targitis@bloomberg.net, Chris Fournier

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