After showing signs of life in June following the Bank of Canada’s first interest rate cut in more than four years, Canada’s housing market took a bit of a breather last month, according to the latest housing report from the Canadian Real Estate Association (CREA).
In July 2024, home sales across Canadian MLS® Systems decreased 0.7% compared to the previous month. This slight decline reversed some of the momentum gained in June following the central bank’s rate cut announcement.
Activity across major cities saw minimal changes, with the exception of Calgary and the Greater Toronto Area, which experienced slight drops.
Inventory on the rise, but still below average
By the end of July, there were approximately 183,450 properties listed for sale on Canadian MLS® Systems. This marked a 22.7% increase from the previous year, yet inventory remains about 10% below the historical average for this time of year, which typically exceeds 200,000 listings.
On a monthly basis, July saw a modest 0.9% increase in new listings nationwide.The bump in new listings was largely driven by the Calgary market.
With new listings edging up and sales slightly down, the national sales-to-new listings ratio eased to 52.7% in July, down from 53.5% in June. This ratio remains within the range of balanced market conditions, which typically falls between 45% and 65%.
At the end of July, Canada had 4.2 months of inventory available, unchanged from June.
Home prices see small gains
The actual national average home price in July 2024 was $667,317, nearly unchanged from July 2023, showing a slight dip of 0.2%.
Meanwhile, the National Composite MLS® Home Price Index (HPI) was virtually flat, increasing 0.2% from June to July. This marks the largest monthly gain in the past year, and only the second increase overall in that period.
