May sales down 2.6%; Prices up 3.7%

Canadian home sales fell 2.6 per cent in May from a year ago, a sign, says some, the market is headed for a landing without the thud many investors feared.

Until recently, mixed sales trends across the country taken together had resulted consistently in a stable national trend,” said Gregory Klump, CREA’s chief economist. “The difference in May was that sales improved in so many markets at the same time.”

According to its latest, the Canadian Real Estate Association (CREA) is pointing to national home sales  that rose 3.6 per cent from April to May.

That likely reflects the seasonal spring ramp-up, which also extended to the number of listing — up 1.9 per cent from April to May.

CREA suggests that data indicates the Canadian housing market remains firmly in balanced territory, although the average sale price also rose 3.7 per cent on a year-over-year basis in May. Still, the price buoyancy, despite a slower market, continues to present cash flow challenges to investors looking to buy properties and access interest rates that continue to be near historic lows.

That trendline has likely helped to keep the average home price high as buyers still find a way to qualify for mortgages despite tighter mortgage rules. time.” Written by  Vernon Clement Jones

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