Photo: chloe delong/Flickr
The hot spring market hasn’t cooled down in summer. According to the latest report from the Canadian Real Estate Association (CREA), existing home sales ticked up 0.8 per cent on a month-over-month basis in June 2014. The increase may sound small in comparison to the 5.9 per cent jump recorded between April and May, but it was the the fifth consecutive monthly increase and the highest level for sales since March 2010.
Greater Vancouver witnessed more sales activity in June than it had in more than three years, and Montreal’s pick up in sales is now 10 per cent above post-recession lows reached earlier this year.
Though some of the big banks spent the spring suggesting that the sales momentum wouldn’t last, the year-over-year numbers tell a different story. The actual (not seasonally adjusted) number of sales for June rose 11.2 per cent from 2013.
June sales were up from 2013 in three out of every four local markets, with the biggest growth in Greater Vancouver, Fraser Valley, Calgary, Greater Toronto and Hamilton-Burlington.
The amount of listings on the market barely budged, moving up by just 0.1 per cent from May. May, however, was when new listings reached their highest peak since April 2010. On an actual (not seasonally adjusted) basis, new listings set a record for the month of June.
“At least some of the recent burst in new supply reflects the slow start to the year, when a harsh winter caused many sellers to delay listing their home in many parts of the country,” said Gregory Klump, CREA’s Chief Economist, in the news release.
“In markets with tight supply and strong demand, the strength of sales in recent months reflects how many properties were snapped up once they finally hit the market. Because the impact of deferred listings and sales has likely run its course, activity over the second half of the year may not be able to maintain the kind of pace we’ve seen over the past couple of months.”
The Aggregate Composite MLS Home Price Index was up by 5.4 per cent year-over-year in June after slower price gains in April and May.
Two-storey houses saw the biggest price bump, with a 6.19 per cent increase. One-storey houses recorded a 5.35 per cent rise, followed by townhouse/row units at 5.07 per cent. Price growth for apartment units, or condos, saw less dramatic growth with a 3.85 per cent boost. (Read more about the gap between house and condo prices here).
The top price performers were Calgary, which saw a 10.74 per cent price increase, followed by the GTA at 7.77 per cent and Greater Vancouver at 4.37 per cent.
Nation-wide, the actual average price for a home reached $413,215 in June, up 6.9 per cent from 2013. However, the GTA and Vancouver skew the average, and without the two priciest markets, the average is $336,164 and the year-over-year increase is 5.2 per cent.
For more details check out the charts below: