National home sales activity continued to trend down in July 2010. The decline was almost entirely the result of fewer sales in British Columbia and Ontario. A slowdown in demand in these two provinces had been widely expected in July, as many purchases were brought forward into the first half of the year in advance of the introduction of the HST.
HST a.k.a. Housing Sales Tumble in Ontario and BC during July…well, duh!
August 16, 2010
We all expected it. And now the numbers are coming in. And while they’re not surprising, no one likes to see sales decrease.
According to CREA:
And supply is adjusting to the lower demand. New residential listings decreased by 7.2 per cent on the MLS in July 2010. But that’s good news for prices! If supply continues to decrease along with demand then the Canadian real estate market will still be balanced and prices won’t fall. So while agents are likely getting fewer commissions due to fewer sales, homeowners aren’t losing equity in their home.
So for all those calling for a housing bubble, it looks like you should be back-pedaling. The resilient Canadian real estate market is absorbing these shocks seamlessly as supply and demand move downward in tandem– without an effect on purchase price.