Canadian home sales fell 6.7% further in June 2017 with the largest monthly decline since June 2010 according to the CREA.
The Canadian Real Estate Association (CREA) reported national home sales fell further in June 2017. The number of homes sold via Canadian MLS® Systems fell 6.7% in June 2017, the largest monthly decline since June 2010.
- National home sales dropped 6.7% from May to June.
- Actual (not seasonally adjusted) activity in June is 11.4% below last June’s level.
- The number of newly listed homes fell by 1.5% from May to June.
- The national average sale price eeked up just 0.4% y-o-y in June.
- The MLS® Home Price Index (HPI) was up 15.8% year-over-year (y-o-y) in June 2017.
“Canadian economic and job growth have been improving, which is good news for housing demand,” said CREA President Andrew Peck. “However, it also means that interest rates have begun to rise, which may impact homebuyer confidence – particularly in pricier markets like Toronto and Vancouver where recent housing policies had already moved potential buyers to the sidelines. In lower priced markets, the effect of higher interest rates on housing affordability will be relatively muted. All real estate is local, and REALTORS® remain your best source for information about sales and listings where you live or might like to.”
The CREA reported June sales were down from the previous month in 70% of all local markets, led overwhelmingly by the Greater Toronto Area (GTA). Monthly declines were also posted in all surrounding Greater Golden Horseshoe housing markets, the Lower Mainland of British Columbia, Kingston, Montreal and Quebec City.
“Changes to Ontario housing policy made in late April have clearly prompted many homebuyers in the Greater Golden Horseshoe region to take a step back and assess how the housing market absorbs the changes,” said Gregory Klump, CREA’s Chief Economist. “The recent increase in interest rates could reinforce a lack of urgency to purchase or, alternatively, move some buyers off the sidelines before their pre-approved mortgage rate expires. In the meantime, some move-up buyers who previously purchased a home before first selling may become more motivated to reduce their asking price rather than carry two mortgages.”
Year on Year Gains Still Solid
Price gains diminished in all benchmark home categories, led by single family homes. Apartment units posted the largest y-o-y gains in June (+20.4%), followed by townhouse/row units (+17.4%), two-storey single family homes (+15.4%), and one-storey single family homes (+12.3%).
Benchmark home prices were up from year-ago levels in 11 of 13 housing markets tracked by the MLS® HPI, price trends continued to vary widely by region.
See More at: http://creastats.crea.ca/natl/index.html
From The TradersCommunity News Desk