Potential buyers had “more choice” in the Canadian real estate market in August, as a rise in new listings was accompanied by a slowdown in activity, according to the national real estate a*sociation.
Home sales fell 4.1 per cent between July and August, the Canadian Real Estate Association (CREA) announced Friday.
Slowdowns in Greater Vancouver, the Fraser Valley, Montreal, Ottawa and a few other Ontario cities were behind the decline, the ACI said.
Despite the slowdown, the national average home price rose 2.1 percent year over year to just over $650,000 last month.
CREA’s overall composite home price index, which provides a more similar comparison of property sales by category, increased 0.4 per cent month over month. The a*sociation said that was about half of the monthly jump seen in July, which itself was half of the gains seen in previous months.
The number of new listings on the market also increased slightly in August, ACI said. The sales-to-new listings ratio – a key indicator in determining the balance of the real estate market – fell to 56.2 percent in August, from 59 percent in July. That’s down from last spring’s high of 67.4 percent and more in line with the long-term average of 55.2 percent, the ACI said.
“With sales slowing and new listings returning to more normal levels, demand and supply continue to balance,” CREA President Larry Cerqua said in a statement.
“This gives buyers more time and more choice. »
In fashion now
CREA senior economist Shaun Cathcart said in a statement that the market slowdown was expected given the Bank of Canada’s interest rate hikes in June and July.
He said demand is still there and will likely return, but with buyers priced out of the market for now, prices should stabilize nationally.
However, this is not necessarily the case at the regional level.
The ACI said price growth remained strong in Quebec and the East Coast, with gains also seen in parts of British Columbia and the Prairies.
Ontario, meanwhile, has been described as a “mixed” country, with some markets seeing prices rise while others are facing significant declines.
© 2023 PKBNEWS, a division of Corus Entertainment Inc.