The total number of Canadian home sales that occurred through local MLS systems dipped 0.8-per-cent month-over-month in June, according to statistics released July 15 by the Canadian Real Estate Association (CREA). However, sales levels in May and June were the highest monthly readings in more than five years.
Even with the slight drop in sales, this June showed an increase of 11 per cent over the same period last year on an actual, not seasonally adjusted basis, and a 14-per-cent increase over the 10-year average for the month. About half of all local markets saw sales increase over the previous month, especially in Hamilton-Burlington and in the GTA’s Durham region as sales declined in Ottawa and Montreal.
“Low interest rates are helping sales activity set new records in and around the Greater Toronto Area, which is boosting national sales activity,” said Gregory Klump, chief economist, CREA. “Those records would be even higher were it not for an ongoing shortage of listings for single family homes in the area. The combination of strong demand and a shortage of listings is continuing to fuel single family home price increases.”
The number of newly listed homes declined by 0.2 per cent between May and June, the third consecutive month this number has remained steady.
The housing market remains balanced with the national sales-to-new listings ratio sitting at 57.2 per cent, up from the low of 50.4 per cent reached in January. The ratio has increased between these two points as new supply has stayed stable.
The MLS Home Price Index increased by 5.43 per cent year-over-year in June. Price growth increased in single family homes, while it slowed for apartment units and remained stable for townhouse/row units.
Two-storey single family homes saw price gains of 7.65 per cent as one-story single family homes saw increases of 4.43 per cent. Townhouses and apartment units also experienced gains, at 4.0 per cent and 2.64 per cent, respectively.
Vancouver posted the largest price gains, of 10.26 per cent, while Greater Toronto Area homes followed with gains of 8.94 per cent. On average, the national sales price of homes rose 9.6 per cent year-over-year to $453,560 on a not seasonally adjusted basis.