Residential property sales in Canada increased by 0.8% in June compared to the previous month, the five monthly rise in a row, taking transactions to their highest level since March 2010.
The data from the Canadian Real Estate Association (CREA) also shows that national average price for homes sold in June was $413,215, up 6.9% from the same month last year.
Sales rose in about half of all local housing markets in June, led by gains in Greater Vancouver where activity hit its highest level in more than three years, and Montreal where activity is now 10% above post-recession lows reached earlier this year.
Actual, not seasonally adjusted, activity in June stood 11.2% above levels reported in the same month last year. June sales were up from year ago levels in three out of every four local markets, led by Greater Vancouver, Fraser Valley, Calgary, Greater Toronto and Hamilton-Burlington.
While prices are up almost 7% on a year ago, the report points out that the national average price continues to be skewed upward by sales activity in Greater Vancouver and Greater Toronto, which are among Canada’s largest and most expensive housing markets. Excluding these two markets from the calculation, the average price is a relatively more modest $336,164 while the year on year increase shrinks to 5.2%.
Year on year price growth varied among local housing markets tracked by the index, with the biggest gains having been posted by Calgary with a rise of 10.74%, Greater Toronto up 7.77% and Greater Vancouver up 4.37%.
Two story single family homes continued to post the biggest year on year price gains with an increase of 6.19%, followed closely by one story single family homes up 5.35% and townhouses up 5.07%. Price growth for apartment units remained comparatively more modest 3.85%.
The number of newly listed homes changed little in June, having eased by 0.1% compared to May. In May, new listings reached their highest level since April 2010. On an actual, not seasonally adjusted, basis, new listings set a record for the month of June.
‘At least some of the recent burst in new supply reflects the slow start to the year, when a harsh winter caused many sellers to delay listing their home in many parts of the country,’ said Gregory Klump, CREA’s chief economist.
‘In markets with tight supply and strong demand, the strength of sales in recent months reflects how many properties were snapped up once they finally hit the market. Because the impact of deferred listings and sales has likely run its course, activity over the second half of the year may not be able to maintain the kind of pace we’ve seen over the past couple of months,’ he added.
The national sales to new listings ratio was 53.6% in June, up slightly from 53.2% in May but still well entrenched within the range between 40 and 60% that marks balanced market territory. Just over half of all local markets posted a sales to new listings ratio in this range in June, with a fairly even split among the remainder between those in buyer’s market and seller’s market territory.
This article was republished with permission from Property Wire.