Skip to main content

Home sales in May down from year ago: Canadian Real Estate Association

Share
OTTAWA -

Canada's real estate market softened further in May as sales and prices of existing homes declined and listings rose.

The trend happened both over the previous month and compared with May 2023, but could start to reverse after the Bank of Canada made its first interest rate cut in four years, said the Canadian Real Estate Association on Monday.

"May was another sleepy month for housing activity in Canada, although it may prove to be the last of those now that interest rates have moved lower," said CREA senior economist Shaun Cathcart in a statement.

The month saw the number of homes sold down 5.9 per cent from May last year, and down 0.6 per cent from April when seasonally adjusted.

The national average price for May amounted to $699,117, down four per cent compared with a year earlier, though up one per cent month-over-month.

CREA's benchmark price, which aims to track typical homes, was down 2.4 per cent from last year and down 0.2 per cent, seasonally adjusted, from April.

New residential listings were up 13.5 per cent nationally from last year, and up 0.5 per cent from April when seasonally adjusted.

The regional pictures vary considerably though, with sales in Greater Vancouver down 19.8 per cent compared with a year ago and Greater Toronto down 22.2 per cent, while sales in Edmonton were up 19.7 and Winnipeg activity was up 14 per cent.

Elevated borrowing costs and Bank of Canada uncertainty kept buyers on the sidelines in May, but that could start to change after the central bank's June rate cut, said TD economist Rishi Sondhi in a note.

"We're expecting a firmer performance in June, amid a decline in bond yields," he said.

"Moving forward, further rate relief is likely in the cards, which should set the stage for a stronger second half of 2024."

This report by The Canadian Press was first published June 17, 2024.

CTVNews.ca Top Stories

DEVELOPING

DEVELOPING Motive of man who tried to assassinate Donald Trump remains elusive

Former U.S. president Donald Trump called for unity and resilience after an attempt on his life injected fresh uncertainty into an already tumultuous presidential campaign, while President Joe Biden implored Americans to 'cool it down' in the final stretch and 'resolve our differences at the ballot box.'

LIVE RNC UPDATES

LIVE RNC UPDATES Conservatives rally around Vance

The Republican National Convention kicked off this week, with delegates and officials descending on Wisconsin amid the tumult that follows a Saturday assassination attempt on Trump as he becomes the GOP’s official nominee. Follow for live updates of the RNC.

Local Spotlight

Stay Connected