The average home purchase price in Canada has reached CAD 668,754
Despite this, people are buying homes in increasing numbers.
According to the Canadian Real Estate Association (CREA), home sales for July showed the strongest year-over-year increase in 2 years. That is, the number of homes sold during the month increased 8.7% year-over-year to 41,186. However, there was little change in the numbers compared to the previous month.
Seasonally adjusted sales totaled 40,028 properties, down 0.7% from June. The number of home sales rose in more than half of local markets in July. However, the decline in sales happened in the Greater Toronto Area, where the real estate market growth rate is usually high. This caused the nationwide rate to decline slightly, as stated by CREA.
CREA note that Canada's housing market has been stabilizing since May, as potential buyers get used to higher interest rates than many expected. Real estate association officials believe the housing market is improving, with the number of offers returning to normal and sales leveling off.
The average price per home at this time was CAD 668,534, up 6.3% from last July. On a seasonally adjusted basis, the average price was CAD 690,867, down 2% from June.
Meanwhile, the number of new listings on the real estate market fell 0.2% year-over-year to 73,215, and on a seasonally adjusted basis rose 5.6% to 67,636.
According to CREA Senior Economist Shaun Cathcart, these indicators show that the real estate market has recently become calmer and prices are beginning to decline. According to him, the rate of growth in sales and prices of real estate in August has already begun to decline. The last key rate hike by the Bank of Canada has had an impact, as well as the fact that inflation will apparently be well above the 2% target. Cathcart admits that many buyers will once again get "back to the sidelines" until the interest rate situation becomes more certain.
However, with July inflation exceeding 3%, raising the likelihood of another key rate review by the Bank of Canada, brokers believe homebuyers who have already been approved for a mortgage will look to take advantage before a potential rate hike.
