In July 2023, the Canadian Real Estate Association (CREA) reported that national home sales showed minimal change compared to the previous month. Sales on the Canadian MLS® Systems experienced a slight 0.7% decline from June to July, but this follows a trend of stabilization since May.

Although more than half of the local markets saw an increase in sales during July, a decrease in the Greater Toronto Area (GTA) influenced the national figure to slightly dip. The Fraser Valley also experienced a decline in sales, which balanced out gains in Montreal, Edmonton, and Calgary.

The number of transactions in July 2023, when not seasonally adjusted, was 8.7% higher than in July 2022, marking the largest year-over-year national sales increase in over two years.

Larry Cerqua, CREA’s Chair, noted that the market had been exhibiting a trend of leveling sales and a return of new listings to more normal levels. This has given buyers more options and led to a slowdown in the rate of price growth by July.

Shaun Cathcart, CREA’s Senior Economist, stated that housing markets had calmed down after a brief surge in April, with price growth now also moderating. Sales and price growth were already showing signs of further decline in August, likely due to the Bank of Canada’s rate hike in mid-July and concerns about prolonged above-target inflation.

Newly listed homes increased by 5.6% month-over-month in July, continuing a trend of recovery from a 20-year low in March. The sales-to-new listings ratio decreased to 59.2% in July from 63% in June and a peak of 68% in April. The national inventory stood at 3.2 months at the end of July, up slightly from 3.1 months in May and June.

The Aggregate Composite MLS® Home Price Index (HPI) rose by 1.1% in July 2023 compared to the previous month. This increase, while larger than usual for a single month, was half the size of gains in April, May, and June. The national average home price in July 2023 was $668,754, reflecting a 6.3% rise from July 2022. The Aggregate Composite MLS® HPI was only 1.5% lower than levels a year ago, indicating a potential return to positive year-over-year comparisons in the coming months.

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