Canada’s housing market up compared to last month but down compared to last year

Real estate activity across Canada perked up a bit in June 2024 compared to the month before, although the latest numbers from the Canadian Real Estate Association also show a drop in sales compared to June 2023.

According to the latest numbers from CREA, home sales activity as registered in the Canadian Multiple Listing Service (MLS) went up by 3.7 per cent between May and June 2024.

In a press release, CREA senior economist Shawn Cathcart pointed out that June was not a “blow the doors off” month, but pointed to interest rate cuts as stimulating some sales.

“Canada’s housing numbers did perk up a bit on a month-over-month basis in June following the first Bank of Canada rate cut,” wrote Cathcart.

However, monthly sales activity was 9.4 per cent lower compared to June 2023. The average price of a home sold in June was down 1.6 per cent from June 2023.

The association says it is now forecasting just a 2.5 per cent annual increase in the national average home price for 2024 to $694,393. That’s down from its previous forecast of a 4.9 per cent increase.

CREA pins the lower forecast on a “quiet spring” and more sellers entering the market while many buyers did not do the same, increasing the supply of homes. 

There were about 180,000 properties listed for sale across Canada at the end of June, up 26 per cent from a year earlier but still below historical averages of around 200,000 for this time of the year.

More to come.