Canadian home sales have begun to slow this spring with national home sales decreasing 8.6% month-over-month.
As real estate activity across Canada begins to slow back to a more normal pace, monthly activity fell 21.7% compared to last year’s record-setting May, as outlined in the Canadian Real Estate Association’s National Statistics.
While the number of newly listed properties was up 4.5% month-over-month, the MLS® Home Price Index (HPI) decreased 0.8% month-over-month but is up 19.8% year-over-year.
The median sales price across Canada increased 3.4% compared to this time last year.
“Ultimately this has been expected and forecast for some time – a slowdown to more normal levels of sales activity and a flattening out of prices,” explains Shaun Cathcart, CREA’s Senior Economist. “What is surprising is how fast we got here. With the now very steep expected pace of Bank of Canada rate hikes, and fixed mortgage rates getting way out in front of those, instead of playing out steadily over two years, that cooling off of sales and prices seems to have mostly played out over the last two months.”
CREA The Canadian Real Estate Association – National Statistics
CREA The Canadian Real Estate Association – Quarterly Forecasts
CREA The Canadian Real Estate Association – Monthly Housing Stats Highlights