How successfully will homebuyers be able to navigate Canada's housing market when banks, mortgage brokers, and the CHMC can't agree on a course of action? Based on the transaction numbers - both in the GTA and across the country - buyers are already flooding back into the market. There is some speculation that the July heatwaves will dial back this activity, only time will tell!
More updates and statistics from The Canadian Real Estate Association below.
Ottawa, ON, July 15, 2020 – Statistics released today by the Canadian Real Estate Association (CREA) reveal national home sales and new listings continued to rebound in June 2020.
• National home sales rose 63% on a month-over-month (m-o-m) basis in June.
• Actual (not seasonally adjusted) activity was up 15.2% year-over-year (y-o-y).
• The number of newly listed properties climbed 49.5% from May to June.
• Actual (not seasonally adjusted) new supply stood 4.8% above June 2019.
• The MLS® Home Price Index (HPI) rose 0.5% m-o-m and was up 5.4% y-o-y.
• The actual (not seasonally adjusted) national average sale price posted a 6.5% y-o-y gain.
Home sales recorded over Canadian MLS® Systems in June 2020 rebounded by a further 63%, returning them to normal levels for the month – some 150% above where they were in April.
Transactions were once again up on a m-o-m basis across the country. Among Canada’s largest markets, sales rose 83.8% in the Greater Toronto Area (GTA), 75.1% in Montreal, 60.3% in Greater Vancouver, 99.7% in the Fraser Valley, 54.9% in Calgary, 59% in Edmonton, 22.5% in Winnipeg, 34.8% in Hamilton-Burlington, 67.9% in London and St. Thomas, 55.6% in Ottawa and 43.6% in Quebec City.
Actual (not seasonally adjusted) sales activity posted a 15.2% y-o-y gain in June.
“REALTORS® across Canada are increasingly seeing business pick back up,” stated Costa Poulopoulos, Chair of CREA. "With sellers and buyers returning to the market, we continue to make sure clients stay safe by complying with government and health officials’ directives and advice, increasingly using technology to list and show properties virtually while providing secure methods to complete required forms and contracts. As always, but maybe now more than ever, REALTORS® remain the best source for information and guidance when negotiating the sale or purchase of a home,” continued Poulopoulos.
“While June’s housing numbers were mostly back at normal levels, we are obviously not back to normal at this point,” said Shaun Cathcart, CREA’s Senior Economist. “I guess the bigger picture is one of cautious optimism. The market has recovered much faster than many would have thought, but what happens later this year remains a big question mark. That said, daily tracking suggests that July, at least, will be even stronger.”
The number of newly listed homes climbed by another 49.5% in June compared to May. As with sales activity, gains were recorded across the country.
The national sales-to-new listings ratio tightened to 63.7% in June compared to 58.5% posted in May. The number of months of inventory is another important measure of the balance between sales and the supply of listings. It represents how long it would take to liquidate current inventories at the current rate of sales activity.
There were only 3.6 months of inventory on a national basis at the end of June 2020 – a 16-year low for this measure.
The Aggregate Composite MLS® Home Price Index (MLS® HPI) climbed 0.5% in June 2020 compared to May.
Of the 20 markets currently tracked by the index, 17 posted m-o-m gains in June.
Generally speaking, prices are re-accelerating east of Manitoba with the exception of Toronto for now. B.C. prices are also picking up with the exception of Vancouver. Home prices are declining in Calgary, while elsewhere on the Prairies prices are either flat or rising.
The non-seasonally adjusted Aggregate Composite MLS® HPI was up 5.4% on a y-o-y basis in June.
The MLS® HPI provides the best way to gauge price trends because averages are strongly distorted by changes in the mix of sales activity from one month to the next.
The actual (not seasonally adjusted) national average price for homes sold in June 2020 was almost $539,000, up 6.5% from the same month the previous year.
The national average price is heavily influenced by sales in the Greater Vancouver and the GTA, two of Canada’s most active and expensive housing markets. Excluding these two markets from calculations cuts more than $107,000 from the national average price. In the months ahead, the extent to which sales fluctuate in these two markets relative to others could have large compositional effects on the national average price, both up and down.
Want to read the full report or take a closer look at the accompanying statistics? Here's the link to CREA's Housing Market Statistics.
~ Posted by Steven Fudge, the purveyor of houseporn.ca and proprietor of Urbaneer.com, a division of Bosley Real Estate Ltd., Brokerage.