Major housing markets record average sales gains of 63% in June

Wednesday, July 29, 2020   /   by Sergey Korostensky

Major housing markets record average sales gains of 63% in June

Figures released by the Canadian Real Estate Association (CREA)* show major housing markets across Canada recorded impressive month-over-month sales gains in June from May, and a national average sales increase of 15.2 percent over June 2019.

The national average month-over-month gain was 63 percent. Among Canada’s largest markets, sales rose 83.8 percent in the Greater Toronto Area, 75.1 percent in Montreal, 60.3 percent in Greater Vancouver, 99.7 percent in the Fraser Valley, 54.9 percent in Calgary, 59 percent in Edmonton, 22.5 percent in Winnipeg, 34.8 percent in Hamilton-Burlington, 67.9 percent in London and St. Thomas, 55.6 percent in Ottawa and 43.6 percent in Quebec City.

“Realtors across Canada are increasingly seeing business pick back up,” says Costa Poulopoulos, chair of CREA. “With sellers and buyers returning to the market, we continue to make sure clients stay safe by complying with government and health officials’ directives and advice, increasingly using technology to list and show properties virtually while providing secure methods to complete required forms and contracts. As always, but maybe now more than ever, realtors remain the best source for information and guidance when negotiating the sale or purchase of a home.”

While the figures are a happy ending to the end of the first half of the year, the second half is an unknown, says Shaun Cathcart, CREA’s senior economist.

“While June’s housing numbers were mostly back at normal levels, we are obviously not back to normal at this point,” says Cathcart. “I guess the bigger picture is one of cautious optimism. The market has recovered much faster than many would have thought, but what happens later this year remains a big question mark. That said, daily tracking suggests that July, at least, will be even stronger.”

On a national basis:

    • The number of newly listed homes climbed by another 49.5 percent in June compared to May. As with sales activity, gains were recorded across the country.

    • The sales to new listings ratio tightened to 63.7% in June compared to 58.5% posted in May.

    • There were 3.6 months of inventory at the end of June 2020 — a 16-year low for this measure.

“Generally speaking, prices are re-accelerating east of Manitoba with the exception of Toronto for now,” says Cathcart. “B.C. prices are also picking up with the exception of Vancouver. Home prices are declining in Calgary, while elsewhere on the Prairies, prices are either flat or rising.”

Key Calgary statistics from June, compared to June 2019 and May 2020

June 2020 June 2019 May 2020
Dollar volume 1,029.4 1,027.7 609.5
Sales 2,296 2,273 1,441
New listings 4,302 4,028 4,344
Average price $448,338 $452,135 $422,994
SNLR 52.6 49.6 52.9

* Monthly statistics from CREA may vary from those published by the Calgary Real Estate Board because the CREA report is issued two weeks later than CREB and may contain updated data.