The Canadian Real Estate Association said Monday that the number of homes sold has declined for four consecutive months, as has the average selling price. Sales in July 2021 were 15% lower than in the same month a year ago, but the group that represents real estate agents notes that last year’s number was the busiest July of all. time. “The slowdown we’ve seen in home sales over the past few months has come as no surprise, given that the level of activity we were seeing in March was unsustainable,” said Shaun Cathcart, chief economist of CREA. “We’re not going back to normal, we’re just going back to where we were before COVID, which was far from normal. “
About two-thirds of all markets across the country saw lower sales, with significant declines in Prince Edward Island, Alberta and Saskatchewan. Sales were slightly lower in Ontario, Quebec and British Columbia, while they increased slightly elsewhere.
The average price of a Canadian home sold on the MLS service was $ 662,000. That’s down from the all-time high of $ 716,828 seen in March 2021.
Although selling prices are down from March, they are still up from where they were at the same time last year, with ACI reporting that its house price index has risen by 22% during the year until the end of July. This is a slight drop from 24 percent in June.
TD Bank economist Rishi Sondhi says July figures suggest the market is actually cooling, but is not on track to get freezing anytime soon.
“Despite the likelihood of further declines in sales, prices are expected to rise over the next few quarters as markets still remain incredibly tight,” he wrote in a report. “However, the growth rate is expected to be much slower than at the start of the pandemic, weighed down by affordability in several markets and compositional forces (i.e. an increasing share of low-priced units in overall sales). “