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2180 Steeles Avenue West,
Suite 204, Concord,
ON, L4K 2Z5

Phone:     905-761-7001
Toll Free: 1855-761-7001
Fax:          905-761-7005

Email: mortgageadvisor@rogers.com

15 July 2019

Canada saw a home sales increase in June

According to the recent report by the Canadian Real Estate Association (CREA), home sales rose by 0.3% in June annually, with gains in Toronto and Montreal offsetting decreases in British Columbia.

Meanwhile, a month-over-month comparison shows a 0.2% decline.

The MLS home price index went up by 0.3% from May, marking a 0.3% drop from June 2018.

The national average home price almost reached $505,500, which is 1.7% higher than a year earlier.

Vancouver Island, Calgary, Edmonton, Regina, Saskatoon and Moncton saw no price changes, while the Greater Vancouver Area, the Fraser Valley and Okanagan reported declines. These markets are facing excessive supply, just like Newfoundland and Labrador.

At the same time, prices were up in Ontario markets, including Barrie, Hamilton, Niagara, Guelph, Ottawa and Toronto, as well as Montreal. The market supply remains tight in those regions, particularly in the GTA.

"We can see a vivid difference between eastern and western Canada real estate markets," - noted Gregory Klump, CREA's chief economist.

"Although sales activity in Canada's three westernmost provinces stopped deteriorating, still some time is necessary for supply and demand to return to a more balanced state”.

While the pace of home sales was close to the 10-year average in Canada, the activity is still lower than in 2015, 2016 and 2017, CREA noted. And it’s in spite of lower mortgage rates.

"In our opinion, home sales may keep rising in the second half of the year, supported by a strong job market, low borrowing costs, population growth, more time after the previous restrictive measures and new rules for first-time homebuyers," - TD economist Rishi Sondhi believes.



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