Canadian Real Estate Association Reports Homes Sales Increased 1.5% Month-Over-Month in June

The Canadian Real Estate Association (CREA) reported on Thursday (7-14-23) that home sales recorded over the Canadian MLS® System posted a 1.5% increase month-over-month in June. This is a smaller increase than in April and May. According to CREA, sales were up in June in a little over half of all local markets, with sales in British Columbia and Alberta offsetting reduced sales in the Greater Toronto Area. The actual (not seasonally adjusted) number of transactions in June was 4.7% above June 2022—the largest year-over-year sales increase in two years.

On a month-over-month basis, the number of newly listed homes was up 5.9% in June, building on gains of 3.1% in April and 7.6% in May. New listings have gone from a 20-year low in March to closer to (but still below) average heading into the summer.

On a national basis at the end of June, there was 3.1 months of inventory. This is unchanged from the end of May but down more than a full month from the most recent peak at the end of January. The long-term average is approximately five months.

The Aggregate Composite MLS® Home Price Index (HPI) climbed 2% from May to June—a large increase for a single month, especially following similar gains in April and May. The recent increases have been broadly based with increases observed in most local markets. The actual (not seasonally adjusted) national average home price was $709,218 (CAD) in June, up by 6.7% year-over-year. Excluding the Greater Toronto and Vancouver areas from the calculation cuts more than $130,000 from the national average.