Canadian Real Estate Market Sees A Change In Temperature

According to the Durham Region Association of Realtors:

Statistics released by the Canadian Real Estate Association (CREA) show national home sales and new listings were both down between April and May 2021.

Summary:

  • National home sales declined by 7.4% on a month-over-month basis in May.
  • Actual (not seasonally adjusted) activity was up 103.6% year-over-year.
  • The number of newly listed properties fell back by 6.4% from April to May.
  • The MLS® Home Price Index (MLS® HPI) rose 1% month-over-month and was up 24.4% year-over-year.
  • The actual (not seasonally adjusted) national average sale price posted a 38.4% year-over-year gain in May.

Home sales recorded over Canadian MLS® Systems fell by 7.4% month-over month in May 2021, building on the 11% decline recorded in April. Activity nonetheless remains historically high, but in contrast to March’s all-time record it is now running closer to levels seen in the second half of 2020.

CREA Updates Resale Housing Market Forecast: Housing activity forecast to continue easing over the second half of 2021 and into 2022

Ottawa, ON June 15, 2021 – The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate boards and associations.

Over the past several years, record levels of international immigration (not including 2020), low interest rates, and an increasingly middle-aged Millennial cohort have combined to fuel very strong household formation and housing demand in Canada. Recall that prior to COVID-19, the number of available listings nationally was already at a 14-year low and the national number of months of inventory on the eve of the lockdowns had fallen to below 4 months (seller’s market territory).

Source: http://www.durhamrealestate.org/blogEntry.cfm?b=25315