In July, home sales dropped by 5.3% back to pre-COVID levels
The volume of Canadian home sales declined by 5.3 per cent on a month-over-month basis in July, marking the smallest decline since housing activity slowed five months ago, according to the Canadian Real Estate Association.
The average home price in Canada fell by $104,000 in July compared to June, to $629,971 when the Greater Toronto Area and Vancouver markets are excluded. In June, the average home price in Canada was $665,850.
Additionally, the number of home sales decreased, falling by 5.3% month over month. The Canadian Real Estate Association (CREA) on Monday released its monthly housing data report, which showed that this was the smallest fall in sales since the housing market began to slow five months ago.
According to the report, after two pandemic years that set Canadian housing activity ablaze with record-breaking sales prices and selling volumes, housing activity has returned to pre-pandemic levels, and the housing market has continued to stabilize.
When the Bank of Canada raised interest rates at the beginning of 2022, driving up mortgage prices and reducing buyers' purchasing power, that fire was put out.
According to the CREA statement, the home sales fall, which affected three-quarters of all local markets, was led by the GTA, Greater Vancouver and the Fraser Valley, Calgary, and Edmonton.
- Real estate sales and average prices are falling from last year at a faster rate.
- The housing market has continued to slump, with the average selling price falling 13% since February.
In the national statistics report, CREA chair Jill Oudil stated, "July saw a continuation of the trends we've been watching unfold for a few months now; sales winding down and prices easing in some relatively more expensive parts of the country as well as places where prices rose most over the past two years."
While the robust demand from earlier this year hasn't diminished, she continued "Before making a purchase, some purchasers would wait to see how financing costs and prices develop. They will discover a little more choice when they re-enter the market, but not as much as they might anticipate."