Canadian Monthly Home Sales Increase 57% Month Over Month

The Canadian Real Estate Association (CREA) released its latest data this morning on national home sales and listings for the month of May 2020. While sales were up 56.9% on a month over month basis from that of April, sales remain at historically low levels.

Despite the month over month increase, sales were down just under 40% on a year over year basis, at 39.8%. It should also be noted that April was the worst month on record for home sales, and that May 2020 home sales was at lows not seen since the 1990’s. New listings were comparatively down 38.1% when compared to May 2019, while being up 69% month over month.

National average sales prices also fell year over year, by 2.6% on an unadjusted basis, while the MLS Home Price index was down 0.8% month over month and up 5.3% year over year. The largest declines were seen in Alberta and British Columbia, while prices in “The Greater Golden Horseshoe” stagnated. Prices have only stabilized in further east regions such as Ottawa, Montreal, and Moncton.

Monthly home sales (CNW Group/Canadian Real Estate Association)

There currently remains 5.6 months of inventory across the country, compared to 9.0 months in April.

The index currently tracks 19 markets across Canada, 18 of which “posted either month over month increases or smaller decreases compared with April,” meaning that the association is doing its best to make the markets appear better than they really are.

Information for this briefing was found via 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.

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