Home sales fell in June by their largest amount in seven years, the Canadian Real Estate Association said Monday, as nearly 75% 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 and the worst monthly decline since 2010 and the third straight monthly contraction.
MONTHLY HOME SALES IN CANADA
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 Canadian markets saw fewer homes sold in June than they did in May. But Ontario makes up a biggest 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 prompted many home buyers in the Greater Toronto 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.”
Canada’s housing boom has 30% chance of going bust, Goldman Sachs says.
‘The market has changed’ and buyers welcome cooldown in redhot Toronto market.
Prices have been skewed higher for a long time by the hot Toronto and Vancouver markets, but the price in both fell in June compared to May, dragging down the national numbers.
“The Canadian housing market is now in its third month of what is expected to be a soft landing,” TD Bank economist Diana Petramala said. “The weakness was triggered by changes to provincial and federal housing policy, but it will ultimately be higher interest rates that help solidify it.”
Petramala expects prices to decline slightly into next year, but the national average will be lower because of a cooldown in BC and Ontario.
“Elsewhere in the country, the improving economic conditions should help offset some the impact of gradual interest rate hikes, with home prices and sales expected to trend higher,” she said.
Annual growth rates for MLS® HPI benchmark prices have moderated over the past two months, but remain strong. The MLS® HPI composite benchmark price was up by 25.3 per cent on a year-over-year basis in June. June’s average selling price for all home types combined for the TREB market area was $793,915, representing a 6.3 per cent increase compared to the same month in 2016. A better supplied market has certainly been a key factor influencing the moderation in price growth.
“Recent Ipsos survey results suggest that home buying activity in the GTA will remain strong moving forward. The year-over-year dip in home sales we have experienced over the last two months seem to be the result of would-be buyers putting their decision to purchase temporarily on hold while they monitor the impact of the Fair Housing Plan. On the supply side of the market, it certainly looks as though buyers will benefit from more choice in the second half of 2017 compared to the same period in 2016,”said Jason Mercer, TREB’s Director of Market Analysis and Service Channels.
Celebrate Canada’s 150th birthday at Canada Days at Scarborough Civic Centre!
The multi-stage event will feature performances by local, national and international music acts from desert blues, Taiwanese indie, and electronica to legends of reggae and South Asian hip hop that will get everyone on their feet. Hear the heartbeat of Canada at the drum stage through pow wow and dhol drum performances and experience the artistry of emerging singers, dancers and spoken word artists at the bandshell stage.
150+ drummers made up of Scarborough’s Chinese Canadian community, and other Torontonians, will join drummers from coast-to-coast to set a Guinness Book of World Record.
A family activity zone and a hospitality area offering food and beverage will be available for the public throughout the day. A spectacular fireworks finale at 10:55 pm will end the night.
Les Filles de Illighadad – Fatou Seidi Ghali and Alamnou Akrouni, Nicolas Pellerin et les Grands Hurleurs, Bonjay, Kingston All-Stars, Horsepowar, Deen Squad, Unity Hour, Beyond Sound Empijah, Chinese Drummers, Lisa Odjig, Nagata Shachu, Pan Fantasy Steelband.
Date & Time: Saturday, July 1, 2017 | 2:00 PM – 11:00 PM
Fireworks: 10:55 PM
Venue : Scarborough Civic Centre – Albert Campbell Centre – 150 Borough Dr, , Toronto
Scarborough Civic Centre – Albert Campbell Square is located in the east end of Toronto, directly off of HWY 401, between McCowan Road and Brimley Road.
Free parking spaces are available at the Scarborough Town Centre.
A hospitality area offering food and beverage for purchase will be available on July 1 at Scarborough Civic Centre. Alcoholic beverages will be available for individuals 19 and older. Valid photo ID must be provided.
• Borough Drive between Borough Approach East and Borough Approach West will be closed from June 29 at 8 a.m. to July 2 at 8 a.m.
pickeringevents🇨🇦🍁Happy 150th Birthday Canada! Let’s celebrate together. 🍁🇨🇦
Bouncers, games, & activities from 12-5pm in Esplanade Park, Pickering.
Main Stage performers including @alxvelizmusic and Fireworks from 5-10pm in Kinsmen Park, Pickering.
#canadaday #canda150 #pickeringproud #freefamilyfun #fireworks #Scarborough