Residential Market Commentary - Week of August 21, 2017

2017-08-21 | 14:55:32

The latest on Canada's housing market

Aug 21, 2017
First National Financial LP

Canadian home sales and prices have slipped again.  And, once again, it is Toronto’s fault.  But the city and environs might not deserve all of the blame.

Nationally, sales dipped 2.1% between June and July, the fourth consecutive monthly decline.  New listings were off 1.8% for the same period.  Year-over-year sales were down 11.9% in July.  While the reductions were, indeed, led by Toronto and vicinity, about 60% of all markets experienced declines.

The MLS Aggregate Composite HPI shows July prices were 12.9% higher, but that continues an ongoing slowing of price acceleration.  Even though benchmark prices were up in 12 of the 13 markets tracked by the index, the actual, national average price of a home dipped 0.3% from last July to about $479,000.  Taking Toronto and Vancouver out of the mix that price drops to $381,000 – a $98,000 difference.

It is a worthwhile exercise to look at the national numbers without Toronto, the GTA and even the Greater Golden Horseshoe Region.  The stats for the zone are inconsistent within themselves, varying widely from region-to-region and even from neighbourhood-to-neighbourhood.

Markets of note that saw year-over-year growth include Montreal, which clocked a 4.9% increase in prices and a pick-up in sales.  Calgary saw price improvement move into positive territory with a 1.1% increase from a year ago.  Regina climbed back above last July’s levels with a 3.6% gain.  Price acceleration hit 5.4% in Ottawa and Moncton.

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