In June, Canadian home sales experienced a 1.5% month-over-month increase as more properties were put up for sale, according to latest data from the Canadian Real Estate Association (CREA). However, this growth rate was slower compared to the rises recorded in April and May, possibly due to the Bank of Canada resuming its interest rate hikes.
Compared to a year ago, home sales were up 4.7%, marking the biggest annual increase over the past two years. Strong sales were recorded in Alberta and British Columbia, helping offset a decline in the Greater Toronto Area. Home prices, meanwhile, were up 6.7% to $709,218.
“With sales levelling off near historically average levels and new listings finally starting to play catch up, housing markets appear to be settling down,” said CREA senior economist Shaun Cathcart. “History suggests the price side of things will respond to this with only a slight lag. Add to that the recent Bank of Canada rate hikes, and we can probably expect price growth to moderate in the months ahead, likely still with some degree of upward pressure, but less than in the last three months.”
CREA calculated that there were about 3.1 months-worth of inventory at the end of June, compared to the long-run average of about 5 months.
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.