JULY HOUSING MARKET REPORT

Ottawa, ON August 15, 2024 - While there were early signs of renewed momentum in June following the Bank of Canada’s first interest rate cut since 2020, activity in Canada’s housing market took a pause in July.

Home sales activity recorded over Canadian MLS® Systems edged back by 0.7% on a month-over-month basis in July 2024, giving back a small portion of June’s post-first rate cut gain. (Chart A)

“With another rate cut announced on July 24, we’ve now seen two rate cuts in a row, and the expected pace of future policy easing has steepened considerably, with...

"Home prices in Canada are forecast to gain a bit this year and rise further in 2025 on relentless demand for housing amid scant new supply and prospects for interest rate cuts later in 2024, according to a Reuters poll of experts.

The outlook has stayed broadly unchanged since the last survey in November, despite market expectations that the first rate cuts from most major central banks, including the Bank of Canada (BoC), will come later than estimated a few months ago.

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Strengthening Demand and Lack of Housing Supply Pushes Up Prices in the GTA 

The Greater Toronto Area (GTA) housing market continued to improve from a sales perspective in May 2023. Unfortunately, the supply of homes for sale did not keep up with the demand for ownership housing. Sales as a share of new listings were up dramatically compared to a year ago. This is a clear signal that competition between buyers increased substantially compared to last year, resulting in the average selling price reaching almost $1.2 million last month.

Canadian home sales up 11.3% from March to April

The year-over-year sales decline was markedly smaller than the drops reported in recent months.

National home sales jumped by 11.3% between March and April as the real estate market picked up again, but supply remained at a 20 year-low, the Canadian Real Estate Association said Monday.

Seasonally adjusted sales for the month totalled 38,164 compared with 34,277 in March.

Market Trends

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According to Realtor.ca, 2023 could return a busy real estate market. And if the multiple offers returning this past month are any indication, they may be right!

"Before we could even roll out the red carpet for spring, the latest housing data is suggesting Canada’s real estate markets could be in for a busy season.

Demographic trends provide a floor to housing correction: RBC

Immigration and smaller households should boost demand and prevent a market spiral, a report says

By: Mark Burgess August 17, 2022

Rising interest rates are contributing to a steep correction in Canada’s housing market, but demographic trends will likely prevent a prolonged spiral, RBC says.

Canada Home Price Index Posts Record Growth in April

Reporting by Julie Gordon in Ottawa; Editing by Chizu Nomiyama - Teranet - 05/18/2022

OTTAWA (Reuters) - Canadian home price growth accelerated again in April, with annual price gains breaking the record set last year, index data showed on Wednesday.

The National Bank Composite House Price Index, which tracks repeat sales of single-family homes in major Canadian markets, rose 2.7% in April, up from a 2.1% gain in March. The data is not seasonally adjusted.

2021 earned the title “the hottest year in Canadian real estate history,” for some. Let's hear what some say is in store for the coming year. 
In a new report, online realtor Zoocasa makes five market predictions after an extraordinary year that will be remembered for record-breaking sales and price gains of over 20%.

1. HOME OFFICE/ FLEX SPACES 

2. AU PAIR SUITES 

3. OUTDOOR LIVING SPACES 

4. SUSTAINABILITY/ ECO-FRIENDLY FEATURES 

5. VEHICLE STORAGE

6. HOME AUTOMATION

7. GYM SPACES

2020 MOST WANTED HOME FEATURES 

72 % 

PREFER OUTDOOR LIVING SPACES 

81% 

PREFER HOME AUTOMATION 

77% 

PREFER OPEN CONCEPT FLOOR PLANS 

68% 

Inspirational stories from quarantine 

Stories, speeches and shares that inspire

The pandemic brings out the best in the best people. Too often, stories of people's positive responses to the situation have been overshadowed by other news. Here's a look at inspiring stories, speeches, and more, from inside Canada's retirement homes.