{"id":151315,"date":"2016-06-16T16:55:33","date_gmt":"2016-06-16T20:55:33","guid":{"rendered":"https:\/\/www.livabl.com\/articles\/?p=151315"},"modified":"2016-06-16T17:10:09","modified_gmt":"2016-06-16T21:10:09","slug":"canadas-big-banks-latest-report-on-housing-market","status":"publish","type":"post","link":"https:\/\/www.livabl.com\/articles\/archives\/canadas-big-banks-latest-report-on-housing-market","title":{"rendered":"Here\u2019s how Canada\u2019s big banks reacted to the latest housing market report"},"content":{"rendered":"

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\"housing<\/a><\/p>\n

Photo: <\/span><\/i>Stewart Butterfield\/Flickr<\/span><\/i><\/a><\/p>\n

After setting an all-time record for the month of April, Canadian home sales fell in May, the Canadian Real Estate Association (CREA) <\/span>reported earlier this week<\/span><\/a>. Month-over-month, residential real estate transactions sank 2.8 per cent, with sales activity falling in about 70 per cent of all Canadian markets. <\/span><\/p>\n

Interestingly, lack of demand wasn\u2019t the main cause of the overall decline. According to Gregory Klump, the CREA\u2019s chief economist, inventory was the bigger factor in many areas. <\/span><\/p>\n

\u201cMany of the housing markets in BC and Ontario that led the monthly decline in national sales are also places where months of inventory have fallen to all-time lows,\u201d he said, adding, \u201c[t]his suggests a lack of supply may be starting to rein in sales amid a continuation of strong housing demand.\u201d <\/span><\/p>\n

That tightness pushed the benchmark price of a Canadian home up by 12.5 per cent compared to May 2015, to $550,000. The country\u2019s sales-to-new listings ratio also increased, hitting 64.8 per cent \u2014 anything above 60 per cent is indicative of a sellers\u2019 market. <\/span><\/p>\n

We took a look at how three of Canada\u2019s major banks reacted to the CREA data. Find out where their economists stand on the present and future of the country\u2019s housing market. <\/span><\/p>\n

TD Bank<\/h3>\n