While the hot Canadian housing market has cooled slightly in recent months, low inventory continues to keep the cost of homes high, according to a new study.
According to the Canadian Real Estate Association’s National Statistics report, Canadian home sales have declined since March.
“While the moderation of sales activity continues to capture most of the headlines these days, it’s record-low inventories that should be our focus,” said Cliff Stevenson, the chair of CREA, stated in the Canadian Real Estate Association’s July report.
In July, home sales didn’t surpass 2020’s numbers, with sales dropping 15.2 percent yearly. However, last July was still the second-best month on record, according to the report. From June to July, home sales declined nationally by 3.5 percent. Further, from March’s peak, sales fell 28 percent.
Regarding specific Canadian cities, Calgary’s and Edmonton’s markets declined the most. The CREA’s data indicates that overall the number of newly listed homes dropped 8.8 percent with the total supply of homes dipping 75 percent compared to last month. Backing up the market shift further, the 2.3 months of home inventory remained the same as the previous month.
That said, the national average home price continues to increase despite the decline in inventory, hitting $662,000 or a 15.6 percent annual increase. As expected, this surge is lead by the cost of homes in the expensive Greater Vancouver Area (GVA) and Greater Toronto Area (GTA).
With these markets removed, July’s national average is $530,0000.