July home sales dipped on monthly basis, but up from a year ago, says CREA

Canadian home sales dipped by 0.7 per cent in July from the month before, the Canadian Real Estate Association said on Thursday.

But monthly sales activity was 4.8 per cent higher than it was during the same period a year earlier.

The number of newly listed properties increased 0.9 per cent month over month, led by a boost in Calgary. 

The average home price in Canada was $667,317 in July, marking a 0.2 per cent drop from the same period last year.

Edmonton and Hamilton-Burlington saw an increase in home sales, while the Greater Toronto Area and Calgary saw declines.

But Calgary led a boost in the number of newly listed properties, which increased 0.9 per cent month over month, the association said.

The total number of properties listed on the Canadian Multiple Listing Service (MLS) system was up 22.7 per cent from a year ago, though still 10 per cent below historical averages for July, according to CREA.

Robert Kavcic, a senior economist at Bank of Montreal, said the real estate market in Canada remains stable.

“Considering the massive swings in prices, activity and interest rates in recent years, this is an outcome that the industry should be thrilled with,” he wrote in a note.

CREA senior economist Shaun Cathcart said the association anticipates housing activity will rise in the fall, as prospective homebuyers wait on more interest rate cuts from the Bank of Canada.

WATCH | Affordable housing skipping banks to bankroll projects: 

Affordable housing projects skip banks, look to community for funding

As Canada’s affordable housing crisis drags on, some non-profits are borrowing directly from neighbours to bankroll rental unit construction through a new financial tool called ‘community bonds.’