Home prices across Canada continued to increase in August, as demand continued to exceed the tight supply of inventory.
According to data published by the Canadian Real Estate Association (CREA), home sales fell 0.5% month-over-month in August, as real estate transactions slumped 14% compared to the same record-breaking period one year ago. The number of newly listed homes was up by a slight 1.2% last month, as some markets across Canada noted increases while others noted declines.
The sales to new listings ratio was still significantly above the long-term average of 54.7%, standing at 72.4% last month compared to July’s 73.6%. The CREA reported that there was about 2.2 months worth of inventory at the end of August, down from the 2.3 months noted in the month prior.
With housing supply still tight across Canada, benchmark home prices jumped 0.9% last month, and are now 21.3% higher compared to August 2020. The non-seasonally adjusted national average home price stood at $663,500; however, it is worthwhile to note that the price is heavily influenced by real estate activity in Toronto and Vancouver, which are Canada’s two most expensive markets.
Information for this briefing was found via the CREA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.