Things are definitely looking up in the Canadian real estate market as activity recently returned with a bang, with home sales soaring in July. Shaun Cathcart, senior economist at the Canadian Real Estate Association (CREA), explains that this increase is indicative of a major change. It heralds the much-awaited return, albeit slowly, that the inflationary tempest has finally subsided. The CREA has indicated plans to closely observe buyer responses to the influx of new supply expected in the early weeks of September.
In July, the national average sale price for homes reached $672,784. This is a 0.6 percent gain over the previous year’s same month. Existing home sales surged an unexpected 3.8 percent month-over-month from June to July. Since March, they’ve skyrocketed a stunning 11.2 percent total.
The CREA pointed to signs of them running out of steam, as new listings rose only 0.1 percent on a month-over-month basis. By the end of July, there were about 202,500 properties available for sale in all of Canada. This figure represents a 10.1 percent increase from this time last year. That number is almost exactly in line with the long-term average for this time of year.
Cathcart highlighted the importance of monitoring upcoming market trends, stating that they will assess how buyers react to the “burst of new supply that typically shows up in the first half of September.” This sudden flood of new capital may prove decisive in determining market conditions over the months ahead.
“The long-anticipated post-inflation crisis pickup in housing seems to have finally arrived.” – Shaun Cathcart
According to CREA’s new numbers, trends towards homebuyer relief are showing positive signs. That market is changing all the time. As implementation begins, everyone will be keeping a close eye on how these changes will impact affordability and availability across all four corners of Canada.
