Canadian Home Sales Fall 4.1% Month-Over-Month in August

The Canadian Real Estate Association (CREA) reported Friday (9-15-23) that home sales posted over the Canadian MLS® Systems declined 4.1% between July and August. The national sales figure was pulled lower in August by declines in Greater Vancouver and the Fraser Valley, Montreal, Ottawa, Hamilton – Burlington as well as London and St. Thomas.

The actual, not seasonally adjusted number of transactions came in 5.3% higher year-over-year.

The number of newly listed homes inched 0.8% higher on a month-over-month basis in August, a small increase following a cumulative gain of more than 24% between March and July. New listings started off 2023 at a 20-year low but are now closer to average levels.

According to CREA, at the end of August, there was 3.4 months of inventory on a national basis. This is up from 3.2 months at the end of July. While measure is up slightly from its recent low of 3.1 months recorded in May and June, it remains below the second half of 2022 and well below its long-term average of approximately five months.

Finally, the Aggregate Composite MLS® Home Price Index (HPI) climbed 0.4% on a month-over-month basis in August 2023—only about half as large as the July gain, which was about half as large as the gains recorded in April, May, and June. This levelling off of prices is in line with slowing sales and a rebound in listings.