OTTAWA,
ON, Aug. 15, 2024 /CNW/ - While there were
early signs of renewed momentum in June following the Bank of
Canada's first interest rate cut
since 2020, activity in Canada's
housing market took a pause in July.
"With another rate cut announced on July
24, we've now seen two rate cuts in a row, and the expected
pace of future policy easing has steepened considerably, with
markets now anticipating rate cuts at every remaining Bank of
Canada decision this year," said
Shaun Cathcart, CREA's Senior
Economist. "Combine that with a record amount of demand waiting in
the wings, and the forecast for a rekindling of Canadian housing
activity going into 2025 has just gone from a layup to a slam
dunk."
Highlights:
- National home sales edged back 0.7% month-over-month in
July.
- Actual (not seasonally adjusted) monthly activity came in 4.8%
above July 2023.
- The number of newly listed properties ticked up 0.9%
month-over-month.
- The MLS® Home Price Index (HPI) edged up 0.2% month-over-month
but was down 3.9% year-over-year.
- The actual (not seasonally adjusted) national average sale
price was almost unchanged (-0.2%) on a year-over-year basis in
July.
Home sales activity recorded over Canadian MLS® Systems edged
back by 0.7% on a month-over-month basis in July 2024, giving back a small portion of June's
post-first rate cut gain.
Monthly changes in sales activity were generally small amongst
the larger centres in July. Interestingly, declines in Calgary and the Greater Toronto Area were mostly offset by
gains in Edmonton and Hamilton-Burlington.
As of the end of July 2024, there
were about 183,450 properties listed for sale on all Canadian MLS®
Systems, up 22.7% from a year earlier but still about 10% below
historical averages of more than 200,000 for this time of the
year.
New listings posted a slight 0.9% month-over-month increase in
July. The national increase was led by a much-needed boost in new
supply in Calgary.
With new listings up slightly and sales down slightly, in July,
the national sales-to-new listings ratio eased back to 52.7%
compared to 53.5% in June. The long-term average for the national
sales-to-new listings ratio is 55%, with a sales-to- new listings
ratio between 45% and 65% generally consistent with balanced
housing market conditions.
"While it wasn't apparent in the July housing data from across
Canada, the stage is increasingly
being set for the return of a more active housing market," said
James Mabey, Chair of CREA. "At this
point, many markets have a healthier amount of choice for buyers
than has been the case in recent years, but the days of the slower
and more relaxed house hunting experience may be somewhat numbered.
If you're hoping to get into the market ahead of the pack, contact
a REALTOR® in your area today."
There were 4.2 months of inventory on a national basis at the
end of July 2024, unchanged from the
end of June. The long-term average is about five months of
inventory.
The National Composite MLS® Home Price Index (HPI) edged up 0.2%
from June to July. While a small increase, it was slightly larger
than the June increase, making it just the second, and the largest,
gain in the last year.
While prices were up slightly at the national level, they were
held back by reduced activity in the largest and most expensive
British Columbia and Ontario markets. Regionally, prices are rising
in a growing number of markets – a majority at this point.
The non-seasonally adjusted National Composite MLS® HPI stood
3.9% below July 2023. This mostly
reflects how prices took off last April, May, June, and July –
something that was not repeated over that same period in 2024. It's
mostly likely that year-over-year comparisons will improve from
this point on.
The actual (not seasonally adjusted) national average home price
was $667,317 in July 2024, almost unchanged (-0.2%) from
July 2023.
The next CREA statistics package will be published on
Monday, September 16,
2024.
PLEASE NOTE: The information contained in this news
release combines both major market and national sales information
from MLS® Systems from the previous month.
CREA cautions that average price information can be useful in
establishing trends over time but does not indicate actual prices
in centres comprised of widely divergent neighbourhoods or account
for price differential between geographic areas. Statistical
information contained in this report includes all housing
types.
MLS® Systems are co-operative marketing systems used only by
Canada's real estate boards to
ensure maximum exposure of properties listed for sale.
The Canadian Real Estate Association (CREA) is one of
Canada's largest single-industry
associations, representing more than 160,000 REALTORS® through 65
real estate boards and associations.
Further information can be found at
http://CREA.ca/statistics.
SOURCE Canadian Real Estate Association (CREA)