Home sales were up in Canada during June, according to new data from the Canadian Real Estate Association (CREA).
Sales were up 1.5% month-over-month and up 4.7% year-over-year during June. Buyers had a wider selection of properties to choose from – the number of newly listed properties rose 5.9% month-over-month, with 3.1 months of inventory on a national basis at the end of the month, unchanged from the end of May
The national average home price (not seasonally adjusted) was $709,218 in June 2023, up 6.7% from June 2022. CREA noted this price was “heavily impacted” by the Greater Toronto Area and Greater Vancouver markets – removing those areas from the equation would have cut more than $130,000 from the national average price.
The MLS Home Price Index (HPI) inched up by 2% month-over-month but was down 4.5% year-over-year.
“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 Shaun Cathcart, CREA’s senior economist. “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.”
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