The Canadian Real Estate Association recently released the latest figure in the housing market and the sales are showing a massive soar for the month of July. The numbers are indicative of the most sales for July in previous years, showing only two major markets declining. According to CREA, the reports showed more than 12% growth in sales, which is the highest since 2016.
An excerpt from Betterdwelling.com showed the changes in the housing sales in the Canadian real estate market:
The rate of growth is increasing, but there’s a few things worth noting. First, this is a rare monthly increase for July, and the first one in over 10 years of data. Typically, sales make a seasonal decline in July, and this year they did not. The 12-month rate of growth has been trending higher, but making its fourth positive print. – Via betterdwelling.com
According to Zoocasa.com, the continuous recovery of the housing market in Canada is continuously felt throughout the country. CREA stressed that the overall recovery of the market reached up to 15% and sales soared up to 60% in all local markets:
While this uptick is partly the result of buyers acclimatizing to the national mortgage stress test and a lower interest rate environment, even the largest markets remain subdued compared to pre-policy levels, say CREA’s analysts.“The extent to which recent declines in mortgage interest rates have helped lift sales activity varies by community and price segment,” states CREA President Jason Stephen. – Via zoocasa.com
The same trend and emphasis on the stress test and its effects on the mortgage status of most Canadian homebuyers received a highlight in Betterdwelling.com, reiterating the statement from a CREA expert:
CREA Chief Economist Gregory Klump notes, “Sales are starting to rebound in places where they dropped when the mortgage stress test took effect at the beginning of 2018, but activity there remains well below levels recorded prior to its introduction.” Further adding, “Sales continue to rise in housing markets where the mortgage stress test had little impact due to upbeat local economic conditions and a supply of affordably priced homes.” – Via betterdwelling.com
In particular, market observers and analysts in specific parts of the country such as Quebec share the same observation and optimism with the increase of housing sales and its continuous growth in the most recent month. Livabl.com quotes Nathalie Begin, president of the Quebec Professional Association of Real Estate Brokers:
“The sales growth that we’ve been witnessing since the start of the year reached a new peak in July with the largest increase in sales since May 2017…What’s remarkable is that the resale market continues to be so strong after 53 consecutive months of increases.” – Via livabl.com
The unusual yet welcomed increase in the Canadian housing sales bucked seasonal declines, putting the market near historical buying
levels. The major rise in sales as well as the growth is indicative of the trend that could be reversing. Moreover, the slew of sales activity remarkably sustained despite the apparent increase in home prices in major markets, giving us more hopes for a rebounding real estate sector.