There has been a notable and rapid cooling in the Canadian real estate market. Overall, the number of sales has dropped but, in the main, prices remain elevated.
Information gathered ahead of next week’s monthly report from the Canadian Real Estate Association shows the big, bell weather markets of Toronto and Vancouver with significant sales declines.
In April, the Greater Toronto Area saw a 27% drop in the number of homes changing hands compared to March. Sales plunged 41% compared to a year ago. Vancouver reports a 43% month-over-month drop in sales and a 34% year-over-year decline for April.
Prices in these two busy and expensive cities were heading in opposite directions. Between February and April, the GTA posted a 6% drop in the average price of home while Vancouver saw a 5% increase.
Ottawa experienced a 21% drop in sales compared to last April with the average price for a home slipping by 1%.
Outside of Ontario price declines seem to ease, but declining sales persist.
Halifax (March figures, latest available at time of writing)
Y/Y sales: -26%
Average price: +25%
Y/Y sales: -17%
M/M sales: -7%
Y/Y sales: +6%
M/M sales: -17%
Average price: +5%