According to statistics released today by The Canadian Real Estate Association (CREA), national home sales declined further in July 2017.
- National home sales fell 2.1% from June to July.
- Actual (not seasonally adjusted) activity in July stood 11.9% below last July’s level.
- The number of newly listed homes edged back by 1.8% from June to July.
- The MLS® Home Price Index (HPI) was up 12.9% year-over-year (y-o-y) in July 2017.
- The national average sale price edged down by 0.3% y-o-y in July.
The number of homes sold via Canadian MLS® Systems fell 2.1% in July 2017, the fourth consecutive monthly decline. While the monthly decline was about one-third the magnitude of those in May and June, it leaves sales activity 15.3% below the record set in March.
Sales were down from the previous month in close to two-thirds of all local markets, led by the Greater Toronto Area (GTA), Calgary, Halifax-Dartmouth and Ottawa.
Actual (not seasonally adjusted) activity was down 11.9% on a year-over-year (y-o-y) basis in July 2017. Sales were down from year-ago levels in about 60% of all local markets, led by the GTA and nearby markets. National sales net of activity in the Greater Golden Horseshoe region was little changed from one year ago.
“July’s interest rate hike may have motivated some homebuyers with pre-approved mortgages to make an offer,” said CREA President Andrew Peck. “Even so, sales activity continued to soften in the Greater Golden Horseshoe region. Meanwhile, sales and prices in Montreal continue to strengthen. All real estate is local, and REALTORS® remain your best source for information about sales and listings where you live or might like to.”
“July marked the smallest monthly decline in Greater Golden Horseshoe home sales since Ontario’s Fair Housing Plan was announced in April,” said Gregory Klump, CREA’s Chief Economist. “This suggests sales may be starting to bottom out amid stabilizing housing market sentiment. Time will tell whether that’s indeed the case once the transitory boost by buyers with pre-approved mortgages fades.”
The number of newly listed homes slipped further by 1.8%, led by the GTA. Many other markets in the Greater Golden Horseshoe region have also seen new supply pull back recently after having jumped immediately following the Ontario government’s announcement of its Fair Housing Plan in late April.
– Canadian Real Estate Association
Toronto Real Estate Board President Tim Syrianos announced that Greater Toronto Area REALTORS® reported 6,357 home sales through TREB’s MLS® System in August 2017. This result was down by 34.8 per cent compared to August 2016.
The number of new listings entered into TREB’s MLS® System, at 11,523, was down by 6.7 per cent year-over-year and was at the lowest level for August since 2010.
“Recent reports suggest that economic conditions remain strong in the GTA. Positive economic news coupled with the slower pace of price growth we are now experiencing could prompt an improvement in the demand for ownership housing, over and above the regular seasonal bump, as we move through the fall,” continued Mr. Syrianos.
The average selling price for all home types combined was $732,292 – up by three per cent compared to August 2016. This growth was driven by the semi-detached, townhouse and condominium apartment market segments that continued to experience high single-digit or double digit year-over-year average price increases.
The MLS® Home Price Index composite benchmark, which accounts for typical home types throughout TREB’s market area, was up by 14.3 per cent year-over-year in August. The fact that MLS® HPI growth outstripped average price growth, points to fewer high-end home sales this year compared to last.
“The relationship between sales and listings in the marketplace today suggests a balanced market. If current conditions are sustained over the coming months, we would expect to see year-over-year price growth normalize slightly above the rate of inflation. However, if some buyers move from the sidelines back into the marketplace, as TREB consumer research suggests may happen, an acceleration in price growth could result if listings remain at current levels,” said Jason Mercer, TREB’s Director of Market Analysis.
– Toronto Real Estate Board
Durham Region Association of REALTORS® (DRAR) President Roger Bouma reported 822 residential transactions in August 2017, a 9.75% increase over the previous month.
August also saw a 16.2% increase in the number of new listings in Durham (1,497), compared to the 1,288 new listings reported in August 2016.
“We continue to experience a healthy balanced market,” said Bouma. “The average house price in August in Durham is $587,172, which is down 16.5% from the highs reached in April, but slightly higher (3%) than the previous month of $569,748 and an 8.3% increase over the same period last year.
– Durham Region Association of Realtors
The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1,748 new listings were processed through the RAHB Multiple Listing Service® (MLS®) System in August, which is 5.4 per cent higher than the same month last year and 4.2 per cent higher than the 10-year average.
All property sales were 18.4 per cent lower than the same month last year, and 3.2 per cent lower than the 10-year average.
“The tendency toward a more balanced market that we have seen over the last few months has continued into August,” said RAHB CEO George O’Neill. “The sales to new listings ratio is at just over 65 per cent, which is still in the low end of a seller’s market, but much closer to balance than earlier this year.”
Seasonally adjusted* sales of residential properties were 18.3 per cent lower than the same month last year, with the average sale price up 11.7 per cent for the month. Seasonally adjusted numbers of new listings were 6.1 per cent higher than August of 2016.
The median price of freehold properties increased by 13.2 per cent over the same month last year while the median price for condominium properties increased by 20.9 per cent compared to the same period.
The average price of freehold properties showed an increase of 11.7 per cent compared to August of last year; the average sale price in the condominium market increased by 14.6 per cent compared to the same period.
“The median and average prices continued to rise,” noted O’Neill. “There had been speculation that with more listings on the market and fewer sales, prices would decrease as a result. That is not the experience in our market area – at least not so far.”
– REALTORS® Association of Hamilton-Burlington (RAHB)