Home sales fell in June by their largest amount in seven years, the Canadian Real Estate Association said Monday, as nearly three-quarters of all markets slowed down during what is normally the most popular time of the year for real estate.
CREA said home sales fell by 6.7 per cent last month compared to May — the sharpest monthly decline since 2010 and the third straight monthly contraction.
Home sales have now fallen 14 per cent since peaking in March. The April to June period is typically a busy time for home sales as the warmer weather tends to bring out buyers.
Prices down, too
More than 70 per cent of all markets saw fewer homes sold in June than they did in May. But Ontario makes up a large percentage of Canada’s housing market, and new rules aimed at slowing the housing market in and around Toronto starting in April appear to be impacting the national numbers.
“Changes to Ontario housing policy made in late April have clearly prompted many home buyers in the Greater Golden Horseshoe region to take a step back and assess how the housing market absorbs the changes,” said CREA’s chief economist, Gregory Klump. “The recent increase in interest rates could reinforce a lack of urgency to purchase or, alternatively, move some buyers off the sidelines before their pre-approved mortgage rate expires.”
While sales have dropped, prices on average are flat on an annual basis. The average price of a Canadian home sold in June was $504,458, a 0.4 per cent increase in the past year.
But that figure has dropped by nearly 10 per cent from the $559,317 average price in April.
The average house price rose in June in Alberta, Manitoba, New Brunswick and Prince Edward Island. In every other province, the average declined.
Prices have been skewed higher for a long time by the hot Toronto and Vancouver markets, but they fell in both in June, dragging down the national figure.
If those two cities are stripped out, the average Canadian house price…