Canadian Home Sales Higher in June
The Canadian Real Estate Association (CREA) released its monthly report today, and it is highlighted by a modest growth in home sales from May to June by 0.8%. Year-over-year rise stands at an 11.2% growth from June 2013. Sales were led mostly by a strong increase in the Greater Vancouver market, which rose 30% month-over-month.
“Sales have improved compared to their slower start earlier this year,” said CREA President Beth Crosbie. “That said, there are still important differences in how housing markets are faring depending on location, housing type and price point. Whether you’re looking to buy or sell, your local realtor is your best source of information on all the factors driving the market where you currently live or might like to in the future.”
Perhaps a more concerning trend for regulators has been the 6.9% growth in the average home price in Canada, at $413,215. This growth is particularly concentrated in the Toronto and Vancouver markets. The credit agency Fitch released a report earlier today stating that Canada’s real estate is overvalued as much as 20%.
“At least some of the recent burst in new supply reflects the slow start to the year, when a harsh winter caused many sellers to delay listing their home in many parts of the country,” said Gregory Klump, CREA’s Chief Economist. “In markets with tight supply and strong demand, the strength of sales in recent months reflects how many properties were snapped up once they finally hit the market. Because the impact of deferred listings and sales has likely run its course, activity over the second half of the year may not be able to maintain the kind of pace we’ve seen over the past couple of months.”
Two-storey single family homes continued to post the biggest year-over-year price gains (+6.19 per cent), followed closely by one-storey single family homes (+5.35 per cent) and townhouse/row units (+5.07 per cent). Price growth for apartment units remained comparatively more modest (+3.85 per cent).