Canada Existing Home Sales Fall in June

Barsaba Taglieri
Luglio 18, 2017

The area's sales-to-new-listings ratio dropped to 39.4 per cent in June, according to seasonally adjusted figures released Monday by the Canadian Real Estate Association.

On an actual, not seasonally adjusted basis, sales fell 11.4% on a year-over-year basis in June.

That decline was influenced by cooled demand in the Greater Golden Horseshoe Area following Ontario's unveiling of its Fair Housing Plan, according to the Canadian Real Estate Association.

The association says sales for June were down 6.7 per cent compared with May on a national basis, with 70 per cent of all local markets posting declines during what is normally the most popular time of the year for real estate. However, the region's months of inventory is on the rise, sitting at 2.5 months in June.

CREA suggests new housing demand will be negatively impacted by last week's rate decision, when the Bank of Canada increased its benchmark rate to 0.75%.

The rate rise "could reinforce a lack of urgency to purchase or, alternatively, move some buyers off the sidelines before their preapproved mortgage rate expires", Mr. Klump said.

The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which are two of Canada's most active and expensive housing markets, the report said.

But some experts believe that home prices in Canada will keep rising, despite the interest rate hike.

Canadian households are carrying record levels of debt, with borrowing climbing at a roughly 6% pace from a year ago.

The latest home price data came the day after the Bank of Canada raised interest rates for the first time in almost seven years.

The number of newly listed homes slid 1.5% in June, led by a sizable pullback in the Toronto region compared with record levels in April and May.

After being in the high 60 per cent range three months ago, the national sales-to-new listings ratio moved towards balanced market territory last month at 52.8 per cent.

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