Home sales in Canada decline for third consecutive month in June, still up from 2020

It appears the home-buying boom that occurred throughout Canada during the height of the pandemic is tapering off.

According to the Canadian Real Estate Association (CREA), national home sales declined by 8.4 per cent month-over-month in June.

This is the third consecutive month that has seen sales decline since the market set an all-time record for sales in March.

However, while June saw a decline in month-over-month sales, it was still an increase from activity the year before—activity was up 13.6 per cent year-over-year in June.

Additionally, in June, the MLS Home Price Index increased by 0.9 per cent month-over-month and 24.4 per cent year-over-year, and the average posted sale price for Canada increased 25.9 per cent year-over-year in June.

Further, the sales-to-new listings ratio in June was 69.2—the lowest it has been since August of 2020.

Moreover, the market has begun to balance out—more than half of all local markets were in balanced market territory in June, which is when they’re within one standard deviation of their long-term average.

Conversely, for much of the past year, the majority of markets were well into seller’s market territory.

“It feels like maybe the theme of this summer is ‘slowly getting back to normal,’ in our own lives and for many housing markets across Canada as well,” Shaun Cathcart, senior economist with the CREA, said in a news release.

“That said, it’s a long road to get back to normal, and for many housing markets the main issue is that supply shortages are as acute as ever. At the same time, the break we’ve had on the population growth side of things is likely now coming to an end. So while the frenzy and emotion of earlier in the pandemic seem to have dissipated for now, the key ingredients of a seller’s market are all still in place. Housing has been a major election issue before and it will be this time around as well. The difference this time will likely be a focus on getting more housing built in the years ahead, so at least we’re finally having the right conversation,” he continued.