Whereas residence gross sales stay greater on an annual foundation in most of Canada’s main housing markets, exercise—and costs— have largely cooled down in comparison with Could.
That’s in keeping with early month-to-month knowledge from the nation’s largest actual property boards.
In Toronto, gross sales had been down 18% in comparison with the earlier month whereas the common benchmark value is down just a little over 1%.
Regardless of excessive demand and a unbroken provide scarcity, “residence gross sales had been hampered laJune housing market chilst month by uncertainty surrounding the Financial institution of Canada’s outlook on inflation and rates of interest,” Toronto Regional Actual Property Board President Paul Baron remarked.
It was an analogous story in Vancouver and Montreal the place residence gross sales are down 13% and eight.5%, respectively, on a month-over-month foundation.
Whereas the summer season months are likely to see a slowdown in exercise in comparison with the busier spring homebuying season, there’s settlement among the many actual property boards that the Financial institution of Canada’s resumption of its charge hikes is having an affect on homebuyer sentiment.
“An extra rise in rates of interest and the decline in new listings are sending a damaging sign to market individuals who may contemplate suspending their buy or sale mission,” stated Charles Brant, Director of the Market Evaluation Division for the Quebec Skilled Affiliation of Actual Property Brokers.
Exercise is up from a yr in the past
Regardless of the seasonal slowdown, exercise stays greater in most markets in comparison with the identical time final yr.
Sturdy exercise was seen in Calgary, the place gross sales are up practically 11% whereas costs are 4.4% greater than a yr in the past.
“The demand for housing stays strong, bolstered by a wholesome labour market and elevated migration ranges, which helps offset the affect of upper lending charges,” stated CREB Chief Economist Ann-Marie Lurie.
In Toronto and Vancouver, gross sales exercise was up by 16.5% and 21%, respectively, in comparison with the identical interval final yr.
Right here’s a take a look at the June statistics from among the nation’s largest regional actual property boards:
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Better Toronto Space
| June 2023 | YoY % Change | |
| Gross sales | 7,481 | 16.5% |
| Benchmark value (all housing sorts) | $1,182,120 | +3.2% |
| New listings | 15,865 | -3% |
| Lively listings | 14,107 | -12.3% |
“The demand for possession housing is stronger than final yr, regardless of greater borrowing prices. With this stated, residence gross sales had been hampered final month by uncertainty surrounding the Financial institution of Canada’s outlook on inflation and rates of interest,” stated TRREB President Paul Baron.
Moreover, a persistent lack of stock probably sidelined some prepared consumers as a result of they couldn’t discover a residence assembly their wants. Merely put, you may’t purchase what just isn’t accessible,” he added.
Supply: Toronto Regional Actual Property Board (TRREB)
Better Vancouver Space
| June 2023 | YoY % Change | |
| Gross sales | 2,988 | +21.1% |
| Benchmark value (all housing sorts) | $1,203,000 | -2.4% |
| New listings | 5,348 | +1.3% |
| Lively listings | 9,990 | -7.9% |
“The market continues to outperform expectations throughout all segments, however the condominium phase confirmed essentially the most relative energy in June. The benchmark value of condominium properties is sort of cresting the height reached in 2022, whereas gross sales of flats are actually above the area’s 10-year seasonal common,” stated Andrew Lis, REBGV Director of Economics and Knowledge Analytics.
“This uniquely positions the condominium phase relative to the connected and indifferent segments the place gross sales remained under the ten-year seasonal averages,” he added.
Supply: Actual Property Board of Better Vancouver (REBGV)
Montreal Census Metropolitan Space
| June 2023 | YoY % Change | |
| Gross sales | 4,045 | -10% |
| Median Value (single-family indifferent) | $550,000 | -4% |
| Median Value (apartment) | $390,000 | -5% |
| New listings | 5,183 | -19% |
| Lively listings | 15,806 | +32% |
“Whereas it’s true that June often experiences much less sustained transactional exercise, an extra rise in rates of interest and the decline in new listings are sending a damaging sign to market individuals who may contemplate suspending their buy or sale mission,” stated Charles Brant, Director of the QPAREB’s Market Evaluation Division.
Supply: Quebec Skilled Affiliation of Actual Property Brokers (QPAREB)
Calgary
| June 2023 | YoY % Change | |
| Gross sales | 3,146 | +10.9% |
| Benchmark value (all housing sorts) | $564,700 | +4.4% |
| New listings | 3,939 | -2.9% |
| Lively listings | 3,458 | -36% |
“The demand for housing stays strong, bolstered by a wholesome labour market and elevated migration ranges, which helps offset the affect of upper lending charges,” stated CREB Chief Economist Ann-Marie Lurie.
“Though we have now seen some latest enhancements in new listings, notably for condominium condominiums, it’s not sufficient to trigger any substantial change from the low stock scenario in our metropolis,” she added. “Whereas new residence begins are on the rise, it would take time to look at their affect on provide.”
Supply: Calgary Actual Property Board (CREB)
Ottawa
| June 2023 | YoY % Change | |
| Gross sales | 1,658 | +11% |
| Common Value (residential property) | $746,445 | -4% |
| Common Value (condominium) | $448,380 | +2% |
| New listings | 2,758 | -14% |
“Though June’s transactions surpassed final yr’s, the variety of gross sales, common costs, and new listings declined on a week-to-week foundation over the course of the month,” stated OREB President Ken Dekker. “Compounded by the standard summer season decline in exercise, the Financial institution of Canada’s rate of interest adjustment at first of the month could have additionally flattened the curve.”
“Provide is trending in the appropriate route,” he added. “The rise in stock is encouraging and signifies sellers trust out there. A rising resale housing inventory will lead to extra choice for consumers and extra gross sales.”
Supply: Ottawa Actual Property Board (OREB)