Canadian real estate markets continue to slow in terms of sales as people contemplate life after the pandemic, but it is still a sellers market.
“It looks like the theme for this summer may be ‘the slow return to normal’, in our own lives and for many housing markets across Canada as well,” said Shaun Cathcart, senior economist at the ACI.
The Canadian Real Estate Association (CREA) says sales fell 8.4% month over month in June, for the third consecutive monthly decrease. The slowdown was widespread, with sales moderating in 80 percent of the markets.
“While there is still a lot of activity in many housing markets in Canada, things have calmed down noticeably in recent months,” said CREA President Cliff Stevenson.
“There remains a shortage of supply in many parts of the country, but at least there isn’t the same level of competition among buyers that we were seeing a few months ago.”
Even though sales are 25% below the peak, June was still a record for the month. Compared to the same month last year, sales increased 13.6 percent.
Why house prices keep rising
Although price increases are slowing, the benchmark home price index is still up 0.9% from the previous month and 24% from last year.
Ontario and British Columbia are up about 30% and 20% respectively, with the largest gains coming from outside Toronto and Vancouver. In Quebec, Montreal increased by 25 percent compared to 15 percent in Quebec.
New Brunswick also increased by about 30 percent. Manitoba was up 15 percent and Alberta and Saskatchewan were up 10 percent.
Supply is a key factor keeping prices high. There was 2.3 months of inventory, which is up from 2.1 months in May, but still well below the long-term five-month average.
And it’s not just an urban exodus and people looking for single-family homes anymore.
“It is also remarkable that this is no longer just a ‘space hunt story’ as national condominium prices have accelerated to double-digit territory, up 12.2 % over a year ago, ”BMO Senior Economist Robert Kavcic said.
“Over the past three months, condo prices have risen more than 19% on an annualized basis and outperform single-family homes for the first time since the start of the pandemic. “
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on twitter @jessysbains.