Real Estate News
Canada’s Major Real Estate Markets Are Seeing Inventory Return To “Balanced”
Canadian real estate inventory is balanced for the level of demand, now that stimulus is gone. Canadian Real Estate Association (CREA) data shows the sales to new listings ratio was balanced in July. It remained flat from the month before, but down more than 30 points from the peak reached earlier this year. The market hasn’t technically crashed yet, but the feeling of going back to “normal” volumes might feel that way to some.
Canadian Housing Market
Home prices in Canada continue to slip as Canada’s housing market cools off from a red-hot winter. For May 2022, the average home price in Canada was $711,316, up just 3% from last year. That marks a 5% drop from last month’s average home price of $746,146. While Canada’s average home price has risen by over $20,000 in one year, home prices have fallen considerably compared to the peak seen earlier this year.
Canadian Home Sales Slow Again
The number of newly listed homes climbed 4.5% on a month-over-month basis in May. The monthly increase was influenced by a jump in new supply in Montreal, while new listings in the GTA posted a small decline. With sales down and new listings up in May, the sales-to-new listings ratio eased back to 57.5% – its lowest level since April 2019. It was also not far off the long-term average for the national sales-to-new listings ratio of 55.1%.
Canada Market Outlook 2022
The Canadian commercial real estate industry has undeniably emerged from the pandemic remarkably well. Demand and activity are building in cities across the country and capital continues to flow into the sector. Notwithstanding any new risks that may emerge, the main detractors to economic growth in 2021, including inflation, labour shortages and restrictive lockdowns, will ease. The outlook for real estate in 2022 is positive and expectations remain high for a year of healthy returns.