Canadian Homes Sales Decline for Third Consecutive Month in June

Data released today (7-15-21) by the Canadian Real Estate Association (CREA) reports that Canadian national home sale decreased -8.4% between May and June 2021. This marks the third straight monthly decline since activity hit an all-time record in March 2021. While sales are now down a cumulative -25% from their peak, and below every other month in the last year, June transactions still managed to set a record for that month. On a month-over-month basis, home sales declined 8.4% in June. However, year-over-year and not seasonally adjusted activity was up 13.6%. The number of properties listed also retreated by -0.7% during the time period. The MLS® Home price Index (MLS® HPI) rose 0.9% month-over-month and was up 24.4% year-over-year. The national average sale price posted (not seasonally adjusted) a year-over-year gain of 25.9% in June.

In a statement prepared for the release of the report, CREA’s Senior Economist Shaun Cathcart said, “It feels like maybe the theme of this summer is ‘slowly getting back to normal,’ in our own lives and for many housing markets across Canada as well. That said, it’s a long road to get back to normal, and for many housing markets the main issue is that supply shortages are as acute as ever. At the same time, the break we’ve had on the population growth side of things is likely now coming to an end. So, while the frenzy and emotion of earlier in the pandemic seem to have dissipated for now, the key ingredients of a seller’s market are all still in place. Housing has been a major election issue before, and it will be this time around as well. The difference this time will likely be a focus on getting more housing built in the years ahead, so at least we’re finally having the right conversation.”