The great Canadian real estate binge may be coming to end. Numbers from the Canadian Real Estate Association (CREA) show the market across the country is substantially weaker when compared to the same time last year. Generally speaking the market saw a drop in sales, and decelerating price growth.
Sales Drop 11.4% From Last Year
Real estate sales across Canada are dropping at a rapid pace. There were 39,979 sales, an 11.4% decline from the same time last year. The monthly drop is the interesting part however, at 6.7% lower it’s the largest monthly drop since June 2010. A monthly decline is normal for this month, just not a drop this large.
Prices Experiencing Deceleration of Growth
Prices across the country were basically flat from the month prior. The composite benchmark, that’s the price of your typical home in Canada, is now $616,500. This represents a minor 0.3% decline from the month before, and is 15.8% higher than the same time last year. While that’s still a pretty solid gain from the same time last year, the 15.8% does signify decelerating growth.
Fastest Moving Markets Across Canada
The biggest increases in the country were in Toronto, Guelph, and Vancouver Island. Toronto ended June with a composite benchmark price of $810,700, a 25.34% increase from the same time last year. Guelph, a suburb of Toronto, saw a composite benchmark price of $421,800 – which is also 25.34% higher than the same time last year…strangely. In third is Vancouver Island, where the benchmark price is now $418,400, a 19.81% increase from the same time last year.
Slowest Moving Markets Across Canada
The smallest changes from last year were observed in Saskatoon, Regina, and Calgary. Saskatoon had a benchmark price of $306,500, a 3% decline from the same time last year. Regina had a benchmark price of $297,800, a 0.7% decline from the same time last year. Third from the bottom is Calgary, which had a benchmark price of $435,900, a 0.6% increase from the same time last year.
Growth remained high from the same time last year in most markets, but decelerating growth is a big concern. The bullish case would be growth falls to a more sustainable level, and prices continue to move higher but slower. The bearish case would be that growth turns negative, and brings the past few years closer to the average growth baseline. What do you think? Leave your comments below.
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