August was another quiet month for Canada’s real estate market. The Canadian Real Estate Association reports sales were up 1.3% over July but were down 2.1% compared to a year earlier.
The national average home price was virtually flat compared to last August, at a little less than $650,000 (+0.1%). CREA’s preferred pricing measure, the MLS Home Price Index, was unchanged month-over-month but was down 3.9% year-over-year, at just over $700,000.
New listings continued to increase in August, rising 1.1% over July. There were approximately 177,450 properties on the market last month, up 18.8% from a year earlier, but still about 10% below the long term average. The sales-to-new listings ratio edged up 0.1% to 53% and there are about four months of inventory on hand.
So far, interest rate cuts by the Bank of Canada have not stimulated the market, but CREA’s senior economist Shaun Cathcart says that’s not surprising.
“[W]ith ever more friendly interest rates now all but guaranteed later this year and into 2025, it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country,” said Cathcart.
“With more interest rate cuts now expected between now and next summer, the stage is set for a faster return of demand, but we’re clearly not there just yet,” said CREA Chair James Mabey.