Resale housing slump continues
June 23 2018
Sales of existing homes in Canada have slowed and are now forecast to decline 11 per cent this year, compared to 2017, according to the Canadian Real Estate Association (CREA). This is up from a March forecast of a 7 per cent drop in sales through the Multiple Listing Service of real estate boards across the country.
“The decrease almost entirely reflects weaker sales in B.C. and Ontario amid heightened housing market uncertainty, provincial policy measures, high home prices, ongoing supply shortages and this year’s new mortgage stress test,” the association said in a statement.
The updated forecast came as CREA reported actual home sales in May hit a seven-year low, down 16.2 per cent compared with a year earlier.
The national average price for homes sold in May was just over $496,000, down 6.4 per cent from a year ago. Excluding the Greater Toronto and Greater Vancouver areas, the average price was just over $391,100, down 2 per cent.
This drop in sales activity capped off a sluggish spring homebuying season, as March, April and May are typically the most active months in any given year. National home sales activity in March and April were down 22.7 per cent and 13.9 per cent, respectively, according to CREA numbers.
Combined sales for the three-month period fell to a nine-year low, CREA reported.