Canadian Home Sales Trend Higher in August

On Monday, the Canadian Real Estate Association (CREA) reported that home sales recorded over Canadian MLS® Systems increased 1.3% month-over-month in August to the highest level since January and the second highest level in over a year.

CREA noted that the monthly changes in sales activity were generally small amongst the larger centers in July. Interestingly, declines in Calgary and the Greater Toronto Area were mostly offset by gains in Edmonton and Hamilton-Burlington.

As of the end of August, there were about 177,450 properties listed for sale on Canadian MLS® Systems, up 18.8% year-over-year but still about 10% below historical averages of more than 200,000 for this time of the year.

New listings posted a 1.1% month-over-month increase. For the second month in a row, the national increase was led by a much-needed boost in new supply in Calgary. New listings were also up in Edmonton, offsetting a decline in the Greater Toronto Area.

There were 4.1 months of inventory on a national basis at the end of August, down from 4.2 months at the end of July. Continuing the theme of the market being in a holding pattern, this measure of market balance has been range-bound between 3.8 months and 4.2 months since last October, CREA said. The long-term average is about five months of inventory.

The actual (not seasonally adjusted) national average home price was C$649,100 in August, about 0.1% above the August 2023 level.