Connect with us

Business and Economy

July home sales dipped on monthly basis, but up from a year ago, says CREA

Published

on

By Jenna Benchetrit, CBC News, RCI

Canadian home sales edged back by 0.7 per cent in July, according to the Canadian Real Estate Association. Photo: CBC / Esteban Cuevas

Housing market momentum hit pause after a solid June

Canadian home sales dipped by 0.7 per cent in July from the month before, the Canadian Real Estate Association said on Thursday.

But monthly sales activity was 4.8 per cent higher than it was during the same period a year earlier.

The number of newly listed properties increased 0.9 per cent month over month, led by a boost in Calgary.

The average home price in Canada was $667,317 in July, marking a 0.2 per cent drop from the same period last year.

CREA senior economist Shaun Cathcart said the association anticipates housing activity will rise in the fall, as prospective homebuyers wait on more interest rate cuts from the Bank of Canada.

INTERACTIVE CHART | Monthly home sales in Canada (new window)

Edmonton and Hamilton-Burlington saw an increase in home sales, while the Greater Toronto Area and Calgary saw declines.

But Calgary led a boost in the number of newly listed properties, which increased 0.9 per cent month over month, the association said.

  • Are you having a hard time cracking into the housing market? Tell us about your experience by sending an email to ask@cbc.ca.

The total number of properties listed on the Canadian Multiple Listing Service (MLS) system was up 22.7 per cent from a year ago, though still 10 per cent below historical averages for July, according to CREA.

Rachel Battaglia, an economist at the Royal Bank of Canada, said home resales in Canada are still underperforming pre-pandemic rates of activity, despite that notable uptick that we saw in June.

While buyers in more expensive markets are still showing signs of hesitation, Battaglia noted that some smaller markets were recovering, including Ottawa, Kitchener-Waterloo and Cambridge in Ontario, and Victoria.

Housing resale strength has mostly come from the Prairies market, including Calgary, Edmonton, Saskatoon and Regina, she added.

We think that it’ll continue to be a slow recovery. As rates continue coming down, more buyers will enter the market, Battaglia said, noting that RBC forecasts another 50 basis point cut before the end of the year, and a 100 basis point cut in 2025.

However, we really don’t see resales making this enormous stride at the national level anytime soon, just because potential buyers are still incredibly strapped, she said.

WATCH | Affordable housing skipping banks to bankroll projects:

Début du widget Widget. Passer le widget ?
Fin du widget Widget. Retourner au début du widget ?

This article is republished from RCI.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maria in Vancouver

Lifestyle2 weeks ago

Nobody Wants This…IRL (In Real Life)

Just like everyone else who’s binged on Netflix series, “Nobody Wants This” — a romcom about a newly single rabbi...

Lifestyle3 weeks ago

Family Estrangement: Why It’s Okay

Family estrangement is the absence of a previously long-standing relationship between family members via emotional or physical distancing to the...

Lifestyle2 months ago

Becoming Your Best Version

By Matter Laurel-Zalko As a woman, I’m constantly evolving. I’m constantly changing towards my better version each year. Actually, I’m...

Lifestyle2 months ago

The True Power of Manifestation

I truly believe in the power of our imagination and that what we believe in our lives is an actual...

Maria in Vancouver3 months ago

DECORATE YOUR HOME 101

By Matte Laurel-Zalko Our home interiors are an insight into our brains and our hearts. It is our own collaboration...

Maria in Vancouver4 months ago

Guide to Planning a Wedding in 2 Months

By Matte Laurel-Zalko Are you recently engaged and find yourself in a bit of a pickle because you and your...

Maria in Vancouver4 months ago

Staying Cool and Stylish this Summer

By Matte Laurel-Zalko I couldn’t agree more when the great late Ella Fitzgerald sang “Summertime and the livin’ is easy.”...

Maria in Vancouver5 months ago

Ageing Gratefully and Joyfully

My 56th trip around the sun is just around the corner! Whew. Wow. Admittedly, I used to be afraid of...

Maria in Vancouver6 months ago

My Love Affair With Pearls

On March 18, 2023, my article, The Power of Pearls was published. In that article, I wrote about the history...

Maria in Vancouver6 months ago

7 Creative Ways to Propose!

Sometime in April 2022, my significant other gave me a heads up: he will be proposing to me on May...