Whereas dwelling 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 response to early month-to-month knowledge from the nation’s largest actual property boards.
In Toronto, gross sales have been down 18% in comparison with the earlier month whereas the common benchmark worth is down a little bit over 1%.
Regardless of excessive demand and a seamless provide scarcity, “dwelling gross sales have 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 the same story in Vancouver and Montreal the place dwelling gross sales are down 13% and eight.5%, respectively, on a month-over-month foundation.
Whereas the summer season months are inclined 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 price hikes is having an affect on homebuyer sentiment.
“An additional rise in rates of interest and the decline in new listings are sending a unfavourable sign to market members who may think about suspending their buy or sale undertaking,” mentioned 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 sturdy, bolstered by a wholesome labour market and elevated migration ranges, which helps offset the affect of upper lending charges,” mentioned 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 a number of the nation’s largest regional actual property boards:
QUICK LINKS:
*********
Higher Toronto Space
| June 2023 | YoY % Change | |
| Gross sales | 7,481 | 16.5% |
| Benchmark worth (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 mentioned, dwelling gross sales have been hampered final month by uncertainty surrounding the Financial institution of Canada’s outlook on inflation and rates of interest,” mentioned TRREB President Paul Baron.”
Moreover, a persistent lack of stock possible sidelined some keen patrons as a result of they couldn’t discover a dwelling assembly their wants. Merely put, you may’t purchase what will not be accessible,” he added.
Supply: Toronto Regional Actual Property Board (TRREB)
Higher Vancouver Space
| June 2023 | YoY % Change | |
| Gross sales | 2,988 | +21.1% |
| Benchmark worth (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 probably the most relative energy in June. The benchmark worth of condominium properties is nearly cresting the height reached in 2022, whereas gross sales of residences at the moment are above the area’s 10-year seasonal common,” mentioned Andrew Lis, REBGV Director of Economics and Information Analytics.
“This uniquely positions the condominium phase relative to the connected and indifferent segments the place gross sales remained beneath the ten-year seasonal averages,” he added.
Supply: Actual Property Board of Higher Vancouver (REBGV)
Montreal Census Metropolitan Space
| June 2023 | YoY % Change | |
| Gross sales | 4,045 | -10% |
| Median Worth (single-family indifferent) | $550,000 | -4% |
| Median Worth (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 unfavourable sign to market members who may think about suspending their buy or sale undertaking,” mentioned 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 worth (all housing sorts) | $564,700 | +4.4% |
| New listings | 3,939 | -2.9% |
| Lively listings | 3,458 | -36% |
“The demand for housing stays sturdy, bolstered by a wholesome labour market and elevated migration ranges, which helps offset the affect of upper lending charges,” mentioned CREB Chief Economist Ann-Marie Lurie.
“Though now we have seen some latest enhancements in new listings, significantly for condominium condominiums, it isn’t sufficient to trigger any substantial change from the low stock state of affairs in our metropolis,” she added. “Whereas new dwelling begins are on the rise, it is going to 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 Worth (residential property) | $746,445 | -4% |
| Common Worth (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,” mentioned OREB President Ken Dekker. “Compounded by the everyday summer season decline in exercise, the Financial institution of Canada’s rate of interest adjustment at the start of the month might have additionally flattened the curve.”
“Provide is trending in the correct route,” he added. “The rise in stock is encouraging and signifies sellers have faith out there. A rising resale housing inventory will end in extra choice for patrons and extra gross sales.”
Supply: Ottawa Actual Property Board (OREB)