It looks like Canada’s high-flying housing market could be headed for a course correction.
Nationwide overall home sale volumes declined 8.4 percent in June 2021 compared to the month prior, according to Canada’s Real Estate Association report.
The report also reveals that June 2021 was the third consecutive monthly downtown for the Canadian home sales market following the all-time high experienced during March 2021.
For example, in B.C, Canada’s most expensive market, sales dropped 14 percent in June 2021 and 15 percent in July 2021, according to the B.C. Real Estate Association.
Further, Toronto experienced a dip of 8.9 percent in May 2021, 8.6 percent in June 2021 and 2 percent in July 2021.
“One thing was abundantly clear about the first quarter’s stratospheric pace of Canadian home sales — that it was unsustainable. The question was how long it would hold up,” reads a report by TD Economics, according to Toronto Urbanized.
The report indicates that an overall slowdown in Canada’s national housing market is slowly creeping up. What’s unclear currently is how steep this decline will end up being. However, the report states that sales are coming into “correction” and moving back to a state of normalcy.
However, the report still indicates that sales during the second half of 2021 and the first half of 2022 will be higher than 2019.
Overall, TD’s report states that 2022 home sales are expected to be healthy.