Zoocasa
Sold Prices
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 Infographics

INFOGRAPHIC – Slowing Home Sales Less Severe in July: CREA

Penelope Graham by Penelope Graham
August 15, 2017
in Infographics, Real Estate News
Reading Time: 3 mins read
Slowing Home Sales
Share7
Tweet
Share11
18 Shares

National home prices have fallen as a whole year over year for the first time since 2013, reveals the latest data from the Canadian Real Estate Association. The July report finds the new national average home price is $478,696 – a 0.3 per cent decrease – as sales softened for the fourth consecutive month, by 2.1 per cent, and 12 per cent from last July.

Much of the decline is being felt in the Greater Toronto Area, though sales fell in two thirds of all markets from June, including Calgary, Ottawa, and Halifax-Dartmouth.

However, the pace at which sales are slowing has substantially calmed since the panicked early summer market, down to only a third of what was seen in May (though still 15.3 per cent below the record set at the March peak).

Prices followed suit in the most affected markets:

Signs of a Calming Market?

A reduced slowdown could indicate the initial rush to list following recent housing market rule changes may be subsiding: sellers swamped the market with new homes for sale in response to Ontario’s Fair Housing Plan, just as buyers decided to take a “wait-and-see” approach.

That flood of new supply, combined with slower sales activity, has effectively tipped the Toronto real estate market into buyer’s territory. The number of months of available inventory – the amount of time it would take to completely sell all homes on the market – hit 5.2 nationally, the most since January 2016. In the GGH, it’s 2.6 months, which is more than triple the all-time low of 0.8 months recorded in February-March.

However, that new supply is starting to slow, moderating by 1.8 per cent across Canada, led by the GTA, Calgary, Edmonton, Montreal, and northern B.C., which has been impacted by wildfires throughout the summer season.

Related Read: GTA Home Sales Plunge 40% in July

Rising Interest Rates Play a Role

CREA President Andrew Peck says the July market may also have benefited from a small buying bump due to rising interest rates, as those with pre-approvals may have been prompted to make a move. “July’s interest rate hike may have motivated some homebuyers with pre-approved mortgages to make an offer,” he said. “Even so, sales activity continued to soften in the Greater Golden Horseshoe Region.”

Gregory Klump, CREA’s chief economist, adds that while this may indicate the market is improving, “Time will tell whether that’s indeed the case, once the transitionary boost by buyers with pre-approved mortgages fades.”

Will Buyers Return for Back-to-School?

The industry has been holding its breath to see if slowdown symptoms are indeed temporary; in addition to the Bank of Canada effect, they’re looking to September, which is usually a busy time for buyers. If buyers don’t show up for the back-to-school season, that could indicate there’s more at play than a market tantrum.

However, it appears new rules have had a positive effect; CREA reports that the majority of markets are now in balanced territory, at an average sales-to-new-listings ratio of 53.5 per cent. (A ratio between 40 – 60 per cent indicates a balance, while above and below are seller’s and buyer’s markets, respectively.) In contrast, the ratio was in the high 60s range in the first quarter of the year.

However, the GTA remains below the 40-per-cent mark.

“In the Greater Golden Horseshoe region, housing markets that recently favoured sellers have become more balanced, with some beginning to tilt towards buyer’s market territory.”

“A Perfectly Balanced Market”

Lauren Haw, Broker of Record at Zoocasa Realty, adds that buyers and sellers shouldn’t be deterred by Toronto’s new status, as it has led to overall healthier conditions.

“What is interesting is there’s less good inventory; buyers are starting to get excited again, but they’re being incredibly picky,” she says. “We are seeing very active buyers who are making offers on great properties, for example, a good house on a quiet street, luxury lofts, and condos with great layouts. Previously inactive buyers, who were priced out the market, are seizing the opportunity to get back in. It’s no longer the days of insane growth and buyers saying, ‘I’ll buy anything.’ As a result, we’re in a perfectly balanced market – if you have premium unit, you will get better buyers.”

Previous Post

3 Bustling Condo Communities Outside of Toronto’s Downtown

Next Post

Why Home-Sale Conditions Are Returning to Toronto’s Buyer’s Market

Penelope Graham

Penelope Graham

Penelope Graham is the Managing Editor at Zoocasa, and has over a decade of experience covering real estate, mortgage, and personal finance topics. Her commentary on the housing market is frequently featured on both national and local media outlets including BNN Bloomberg, CBC, The Toronto Star, National Post, and The Huffington Post. When not keeping an eye on Toronto's hot housing market, she can be found brunching in one of the city's many vibrant neighbourhoods, travelling abroad, or in the dance studio.

Related Posts

Affordability Reports

Same Size, Better Deal: Canadian Cities That Outshine Their U.S. Counterparts in Affordability

June 25, 2025
A family with kids on the beach
Affordability Reports

Skipping One Disney Vacation Could Put You Up to 20% Closer to Homeownership in These U.S. Cities

May 26, 2025
A luxury mansion in Florida with a boat in front of it.
Affordability Reports

The Middle Class Housing Gap: What Lower vs. Upper Earners Can Afford Across the U.S.

May 14, 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 person holds a paint sample while standing in front of a ladder, preparing for a painting project.

Pantone Colour of the Year: What the Last Decade Looked Like

July 8, 2025

Longer Days, Slower Sales as June Market Offers Buyer Advantage: TRREB

July 7, 2025
Condo balcony overlooking the water

Canada’s Hottest Condo Market of the Last Decade Might Surprise You (It’s Not Toronto or Vancouver)

July 7, 2025
Two model homes, a residential lease agreement and a pair of keys.

How to Break a Lease Under Canadian Rental Laws

July 6, 2025

Featured Listings

5 Canadian Cottage Regions That Make the Perfect U.S. Buyer Getaway 

June 15, 2025

From Skyline Views to Private Escapes: 5 Luxe Calgary Homes for Sale

June 10, 2025

What it Means When a Home is Listed for $1

June 7, 2025

6 Can’t-Miss Victorian Homes for Sale in San Francisco Right Now

June 2, 2025
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.