Zoocasa
Sold Prices
Mortgage Calculator
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Home Canada

Sharp Housing Adjustment as Sales Continue to Drop: CREA

Patti Cosgarea by Patti Cosgarea
August 15, 2022
in Canada, Market Insights, Real Estate News, Toronto Real Estate, Vancouver Real Estate
Reading Time: 5 mins read
Share
Tweet
Share
0 Shares

The latest Canadian housing report by the Canadian Real Estate Association (CREA) found that sales were down in three-quarters of all local markets led by the Greater Toronto Area (GTA), Greater Vancouver and Fraser Valley, Calgary, and Edmonton. The 5.3% decline in home sales was the fifth consecutive month of decline in housing activity, as well as the lowest home sales this year.

The decline in home sales is generally affected by the available inventory but in this case more largely due to the rising concerns of inflation and interest rates prevalent this year. In July, there were 3.4 months of inventory across the country. This number is still quite low but is much more positive compared to the historical low of 1.7 months at the beginning of 2022. 

  • Read: Condo Apartments the Most Affordable and Second Most In-Demand Property Type in Toronto and GTA: TRREB

The number of newly listed properties is following the same trend as sales, also down 5.3% on a month-over-month basis in July. Listings decreased in approximately three-quarters of local markets, including the same large markets where sales were down. With sales and new listings both down, the sales-to-new-listings ratio (SNLR), a formula used to determine if the housing market is favouring buyers, sellers, or is balanced, is at 51.7%. This indicates that the market is relatively balanced, but it is slightly below the long-term average for the national SNLR of 55.1%.

Markets Across Ontario and British Columbia are Impacting Monthly Declines 

The number of sales, new listings, and inventory are impacted by Ontario and British Columbia since these provinces have some of the biggest housing markets in Canada. When these markets shift, it impacts the national averages. For example, the actual (not seasonally adjusted) national average home price was $629,971 in July 2022, down 5% from July 2021. But, if you remove the Vancouver and GTA markets from that average, the national average price would be down $104,000, a decrease of 16.5%. 

  • Read: Rent or Buy? Average Monthly Rental Prices vs. Monthly Mortgage Payments in the GTA

Prices in the Prairies, including Saskatchewan and Manitoba, remain quite flat month-over-month, and prices in Quebec are just beginning to show signs of slowing. On the East Coast, prices are rising at a slower rate compared to other provinces, with the exception of the Halifax-Dartmouth market, where prices are beginning to dip. 

Buyer Psychology Continues to Affect the Market as Interest Rates Rise

At the beginning of the pandemic, many moved away from city cores and purchased homes in smaller markets which drove prices up in suburban areas around the major centres to historical highs. Prices hit an all-time high in February across much of the country. Fast forward to the summer market, however, and rising interest rates are now directly affecting prices, especially across Ontario. Prices have dipped month-over-month in the GTA, but also more drastically in many of the smaller, surrounding cities that buyers moved to during the peak of the pandemic including Cambridge, Kitchener-Waterloo, Quite & District, Simcoe, and London. 

  • Read: Four Tips for Buying a Home Following Bank of Canada’s Interest Rate Increase

“The demand that was so strong just a few months ago has not gone away, but some buyers will likely stay on the sidelines until they see what happens with borrowing costs and prices. As they re-enter the market, they’ll find a bit more selection, but not as much as might be expected. As the market continues to evolve, your best bet is to contact your local REALTOR® for information and guidance about how to navigate the current environment,” explained Jill Oudil, Chair of CREA. 

Ontario Markets That are Becoming More Affordable 

Some buyers are taking advantage of the softer prices seen across cities in Ontario. If you’re considering purchasing a home before the next Bank of Canada interest rate announcement, here are some of the homes in cities where prices are declining month-over-month. 

Mississauga

Prices in Mississauga have been declining month-over-month since May. Currently, the benchmark price is $1,130,900, down 5.3% from the previous month. 

Cambridge 

This commuter city is just outside of the GTA and grew quickly during the pandemic. The benchmark price of $791,700 is down 3.4% from June. 

Grey Bruce Owen Sound

Many buyers from larger cities flocked to this popular vacation region during the pandemic. Prices have been declining for the past two months, making the current benchmark price $603,900.

Quinte & District

Another popular city for buyers during the pandemic and number three on the list of Where to Buy Real Estate in Canada 2022, the benchmark price in July was $582,000. 

Previous Post

Hidden Gems for Sale in Markham under $700,000

Next Post

Variable or Fixed-Rate Mortgage? 4 Tips to Help You Decide Which to Choose While Interest Rates are Rising

Patti Cosgarea

Patti Cosgarea

Patti Cosgarea is an accomplished public relations professional with a passion for digital communications and all things real estate. She dedicates her creative prowess to crafting compelling content that empowers and guides North Americans on their real estate journeys. With a keen eye for detail and a knack for storytelling, Patti ensures that Zoocasa's message resonates with its audience, whether it’s first-time home buyers or experienced investors, making complex real estate concepts accessible to all. Her love for real estate extends to her personal life. When she’s not analyzing Canadian and U.S. real estate data, you can find her wielding a hammer and paintbrush, renovating her townhouse in Kitchener. These DIY projects showcase her creativity and passion for design, learning as she goes to offer her insights to others working on transforming their house into a home. Patti’s real estate insights and articles have been published in BNN Bloomberg, CTV News, the Globe and Mail, and her interviews and quotes about current market conditions can be found on the National Post, Business in Vancouver, Global News and more.

Related Posts

A family walking out of an airport together.
Canada

7 Halifax Communities Near the Airport for Homebuyers and Frequent Flyers

May 21, 2025
A woman reviews her finances
Canada

One in Four Canadians Are Going House Poor — Regardless of Income: Survey

May 21, 2025
British Columbia

When the Street Name Steals the Show: 5 of Canada’s Funniest Home Listings

May 20, 2025

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

A family walking out of an airport together.

7 Halifax Communities Near the Airport for Homebuyers and Frequent Flyers

May 21, 2025
A woman reviews her finances

One in Four Canadians Are Going House Poor — Regardless of Income: Survey

May 21, 2025

When the Street Name Steals the Show: 5 of Canada’s Funniest Home Listings

May 20, 2025
A group of friends sitting on the beach.

10 Things to Do in Pensacola That Turn Visitors Into Homeowners 

May 19, 2025

Featured Listings

Dream Homes with Breathtaking Views in the U.S.

February 11, 2025
A family looking at a house.

Deals of the Month: Ontario Homes with Recent Price Reductions

November 12, 2024

Slopeside Living: 9 Ontario Homes Near Ski Hills and Resorts

October 11, 2024
An athlete holding USA flag.

Homes of Champions: Luxurious Mansions Fit for America’s Olympians

August 5, 2024
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Stay Connected

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.