Home gross sales cool in August, however common costs nonetheless effectively up from final 12 months

Canada’s housing market continued to indicate indicators of a gradual cool-down in August, because the variety of gross sales ticked decrease whilst promoting costs nonetheless headed greater in comparison with where they have been a 12 months in the past.

The Canadian Real Estate Association stated Wednesday that the variety of properties offered was 0.5 per cent decrease in August than it was in July — and was off by about 14 per cent in comparison with the variety of gross sales clocked this time final 12 months.

About half of all markets are seeing extra homes come on the market, while the other half are seeing fewer. Shaun Cathcart, chief economist for the group that represents greater than 100,000 realtors throughout the nation, stated the market appears to be shifting right into a new section.

“Canadian housing markets appear to be stabilizing somewhere in between pre- and peak-pandemic levels — which is to say, still extremely unbalanced,” he stated in a launch.

While the market could also be slowing down in lots of elements of the nation, up to now that’s not translating into decrease costs within the mixture. The common promoting worth of a house final month was $663,500. That’s up from the $586,000 common promoting worth in August 2020, however down from the all-time excessive of $716,000 set in March 2021, when bubble fears have been effervescent over.

The CREA says the typical worth quantity may be deceptive as a result of it’s simply skewed by gross sales in huge costly markets like Toronto and Vancouver. Instead, the group trumpets one other quantity — the House Price Index — as a result of it adjusts for the varieties of properties offered. That determine rose by greater than 20 per cent within the 12 months as much as August, after additionally having peaked in March 2021.

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