Sales soared 26% from month before, prices up 2.3%
Author of the article:
Chris Fournier and Erik Hertzberg
Aug 17, 2020 • • 1 minute read
Canadian home sales surged to a record in July as homebuyers emerged from lockdowns.
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Transactions for existing properties reached 62,355 in the month, up 26 per cent from a month earlier, the Canadian Real Estate Association reported. Benchmark prices were 2.3 per cent higher on the month, as pent-up demand for homes collided with extremely low inventory levels.
“What a difference three months makes, from some of the lowest housing numbers ever back in April to the multiple monthly records logged in July,” said Shaun Cathcart, CREA’s senior economist. “A big part of what we’re seeing right now is the snap back in activity that would have otherwise happened earlier this year.
Canada’s economy is emerging from the steepest downturn since the Great Depression, fuelling a renewed housing boom. Housing starts hit a two-year high last month, while the latest confidence readings show optimism about prices is rebounding.
In Toronto, the country’s largest market, sales of existing properties jumped 50 per cent in July compared to June, and were up 29 per cent with the same month a year ago, CREA reported. Vancouver sales increased 44 per cent on the month and 24 per cent from July 2019. Average prices in Toronto were 5.5 per cent higher on the month, and up 1.5 per cent in Vancouver.
There were just 2.8 months of inventory nationwide, the lowest level on record, CREA said.
Average prices were 9.4 per cent higher nationwide on the month.
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