Canada’s property markets continue to slow in terms of sales as people look to the post-pandemic future, but this is still a seller’s market.
“The theme for this summer seems to be ‘getting back to normal’ in our lives and in many housing markets across Canada,” said CREA senior economist Sean Cathcart.
Canadian Real Estate Association (CREA) reports in June, sales fell 8.4% from the previous month., the third consecutive month of decline. The downturn was widespread, with sales down 80% of the markets.
“Although activity continues to be strong in many housing markets in Canada, the situation has calmed down noticeably in the past few months,” said CREA Chairman Cliff Stevenson.
“In many parts of the country, supply shortages remain, but at least there is not the level of competition among buyers that we saw a few months ago.”
Even though sales were 25% below their peak, June was still a record high for the month. Compared to the same month last year, sales increased by 13.6%.
Why house prices continue to rise
Although price increases are slowing, the core home price index continued to rise 0.9 percent from the previous month and 24 percent from a year ago.
Ontario and British Columbia grew by about 30% and 20%, respectively, with the largest gains outside Toronto and Vancouver. In Quebec, growth in Montreal was 25 percent compared to 15 percent in Quebec.
New Brunswick also grew by about 30%. Manitoba is up 15 percent, while Alberta and Saskatchewan are up 10 percent.
Supply is a key factor in keeping prices high. The inventory was 2.3 months, up from 2.1 months in May, but still well below the long-term average of five months.
And this is no longer just an escape from cities and people looking for mansions.
“It is also noteworthy that this is no longer just a ‘space hunt story’ as national apartment prices have risen to double digits, up 12.2% from a year ago,” said BMO senior economist Robert Kavcic.
“Over the past three months, condominium prices have risen more than 19 percent year on year and have surpassed individual home prices for the first time since the pandemic began.”
Jesse Baines is a senior reporter for Yahoo Finance Canada. Follow him on Twitter @jessysbains…