The housing market paused again last month according to CREA data
There were some green shoots of recovery for the Canadian housing market in June, but July’s data shows that the rebound is not certain yet.
New figures from the Canadian Real Estate Association reveal that national home sales edged back 0.7% month-over-month in July while actual (not seasonally adjusted) monthly activity came in 4.8% above July 2023.
"While it wasn't apparent in the July housing data from across Canada, the stage is increasingly being set for the return of a more active housing market," said James Mabey, Chair of CREA. "At this point, many markets have a healthier amount of choice for buyers than has been the case in recent years, but the days of the slower and more relaxed house hunting experience may be somewhat numbered.”
Supply increased by just shy of 1% and there were about 183,450 properties listed for sale on all Canadian MLS Systems by the end of the month. That is almost 23% above year-ago stats but about 10% below historical averages of more than 200,000 for this time of the year.
House prices remain subdued compared to a year earlier, down 3.9% year-over-year although posting a 0.2% increase in July compared to June. This is reflective of strong price increases during the April-July period of 2023 and CREA believes that the year-over-year comparisons will now start to narrow.
However, CREA’s senior economist, Shaun Cathcart, says that positive momentum should produce a more robust rebound for the housing market in the months ahead, especially if the Bank of Canada continues to ease monetary policy.
"With another rate cut announced on July 24, we've now seen two rate cuts in a row, and the expected pace of future policy easing has steepened considerably, with markets now anticipating rate cuts at every remaining Bank of Canada decision this year," he said. "Combine that with a record amount of demand waiting in the wings, and the forecast for a rekindling of Canadian housing activity going into 2025 has just gone from a layup to a slam dunk."
