The average price of homes sold in Canada in August fell 3.9 per cent from the same month last year to $637,673 according to new statistics released Thursday by the Canadian Real Estate Association.
Home sales, meanwhile, edged down just one per cent between July and August, making this the sixth consecutive — though smallest — month-over-month decline in volumes.
It was close to an even split between the number of markets where sales were up and those where sales were down. Gains were led by the Greater Toronto Area (GTA) and a large regional mix of other Ontario markets. These were offset by declines in Greater Vancouver, Calgary, Edmonton, Winnipeg and Halifax-Dartmouth.
Despite the decline from last August, the actual (not seasonally adjusted) national average price inched up $7,702 over July. It is heavily influenced by sales in Greater Vancouver and the GTA, two of Canada’s most active and expensive housing markets.
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“August saw national sales hold steady month-to-month for the first time since February which, along with a stabilization of demand/supply conditions in many markets, could be an early sign that this year’s sharp adjustment in housing markets across Canada may have mostly run its course,” Jill Oudil, chair of CREA, said in the report. “Some buyers may choose to remain on the sidelines until they see clearer signs of borrowing costs and prices also stabilizing.”
Meanwhile, the Aggregate Composite MLS Home Price Index (HPI) edged down 1.6 per cent on a month-over-month basis in August, not a small decline historically, but smaller than those in June and July. It was still up by 7.1 per cent on a year-over-year basis in August. This was the first single-digit increase in almost two years, as year-over-year comparisons have been winding down at a brisk pace from the near-30 per cent year-over-year gains logged just six months ago.
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