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Canada’s home sales dipped by 0.7% month-over-month in July, even though number of newly listed properties rose 5.6% month-over-month and sales were up in more than half of all local markets.

According to data from the Canadian Real Estate Association (CREA), a decline in the Greater Toronto Area (GTA) tipped the national figure slightly negative. However, the actual (not seasonally adjusted) number of transactions in July were 8.7% above the July 2022 level, marking the largest year-over-year national sales increase in more than two years. There were 3.2 months of inventory on a national basis at the end of July 2023, up slightly from 3.1 months in May and June for the first month-over-month increase since January.

The actual (not seasonally adjusted) national average home price was $668,754, up 6.3% from July 2022.

“Following a brief surge of activity in April, housing markets have settled down in recent months, with price growth now also moderating with its usual slight lag,” said Shaun Cathcart, CREA’s senior economist. “Sales and price growth are already showing signs of tapering off further in August in response to the Bank of Canada’s mid-July rate hike and messaging regarding above-target inflation for longer than previously expected. We’re probably looking at another round of ʻback to the sidelines’ for some buyers until there’s a higher level of certainty around interest rates going forward.”