The nation’s resale real estate market appears to be recovering from a slowdown in activity that bottomed in the spring amid concerns over a trade war. Still, a new report from RBC Economics noted that Canada’s two largest markets — while seeing an increase in sales in July, year over year — remain weighed down by a lack of affordable supply for first-time buyers. In turn, new listings have grown year over year in Toronto and Vancouver to match rising sales, resulting in a decline in overall prices.
The study found the national picture is modestly brighter, though the large markets still are affecting growth. Resales grew nearly seven percent year over year and almost four percent month over month in July.
New listings grew about six per cent in July from last year, and were flat from June to July.
Prices were also flat month over month, though down about three percent from last year.
Calgary and Edmonton were among the three major markets seeing year-over-year declines in resales, down about nine and two percent respectively. Sales, however, increased about three per cent in Calgary month over month, while they grew almost two per cent in Edmonton. Vancouver was the other market in the study seeing a decline, down about two per cent year over year — though up nearly nine per cent in July from June.
New listings increased about eight per cent in Calgary and 16 per cent in Edmonton in July versus July last year. Month over month, listings grew about one per cent in Calgary, and nearly seven per cent in Edmonton. Despite declining demand in Edmonton, its MLS price index grew more than five percent year over year, though down about one percent month over month.
In Calgary, the price index declined about two percent in July compared with the same period last year, and was flat from June to July.
Courtesy the Calgary Herald
