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<\/a>Photo:\u00a0Tiago Rodrigues<\/a>\/Unsplash<\/a><\/em><\/p>\nA wave of pent up housing demand hit markets across Canada in May in an encouraging sign that buyers are returning after mostly keeping to the sidelines through April.<\/p>\n
May sales increased nearly 57 percent nationally over April\u2019s total and the market is already showing signs that there\u2019s another strong sales gain in store for June. <\/p>\n
However, even the significant May rebound was only enough to gain back about a third of the activity lost through the late winter and April, according to TD Economist Rishi Sondhi.<\/p>\n\n
Even so, the home sales data, released this week by the Canadian Real Estate Association (CREA), was heralded by Sondhi as a signal that the country\u2019s housing recovery is underway.<\/p>\n
With home sales certain to remain at very low levels unseen in decades after activity froze up in March, there is now enough pent up demand to propel further sales gains in the months to come as provinces continue easing social distancing measures. Already, Sondhi said, home sales are shaping up to record another solid gain in June.<\/p>\n
\u201cThe big question is what happens after this initial burst,\u201d Sondhi wrote. \u201cOur expectation is that softer population growth, a slow recovery in job markets and CMHC tightening measures will moderate growth in sales and prices towards the latter part of the year and into 2021,\u201d he continued.<\/p>\n