Canada’s housing market continues to show massive regional disparity

Canadian Existing Home Sales for January edged up 0.5% in the month (seasonally adjusted), a solid 8% from year-ago levels. Regional differences in January were quite evident, consistent with the underlying economic picture. Sales and prices continue to retrench in markets exposed to oil prices.

The median average price gain across 26 cities was 4.7% y/y in January; the strongest was +31% y/y in Vancouver (this is the average transaction price, skewed by high-end sales); the weakest was -10% y/y in Newfoundland & Labrador.

"Those markets exposed to oil prices are correcting; the uber-tight big-two cities are benefiting from lower interest rates than we otherwise would have seen had oil prices not fallen; while everyone else is scattered in between. Look for more of the same right through 2016." said BMO Capital Markets in a report