Canada’s housing market continues to cool in June

Canada’s housing market continues to cool in June

Roger Pettingell Sarasota Real Estate

Toronto, Vancouver, Montreal, Ottawa, Edmonton and Calgary all experienced declines in home sales that month.

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Canada’s major markets, including Calgary, are showing signs of cooling off from their peaks earlier this year, a new report has found.

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Toronto, Vancouver, Montreal, Ottawa, Edmonton and Calgary all experienced declines in home sales in June as interest rate hikes by the Bank of Canada have cut into affordability and dampened demand that surged amid the pandemic, the study by RBC Economics found.

The annual change in sales was starkest in Vancouver’s outlying communities in the Fraser Valley region, down 43 per cent, followed by Toronto at more than 41 per cent. Vancouver also saw a steep, year-over-year decline in June of 35 per cent in resales.

Calgary and Edmonton experienced more modest declines at about two and five per cent, respectively.

Most markets showed moderate price growth in June from the same month the previous year, the report did find. In Toronto, for example, the benchmark price in June increased 18 per cent from last year — though it declined about three per cent from this past May. According to the Toronto Regional Real Estate Board, the average price of a home last month was about $1.1 million.

The RBC report forecasted that continuing increases in borrowing costs — as a result of more expected interest rate hikes by the Bank of Canada, which influence mortgage rates — will weigh on sales and prices even more for the remainder of the year.

Already sales-to-new-listings ratios for major markets are showing balanced conditions between buyers and sellers, with the exception of Calgary where the market still favours sellers.


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