July home sales saw the largest year-over-year increase in more than two years, but were little changed from June, the Canadian Real Estate Association said Tuesday.
"This has been giving buyers more choice and balancing the market, which as of July was also slowing the rate of price growth."On a seasonally-adjusted basis, the average was $690,867, a two per cent slide from June.
Meanwhile, new listings ticked down 0.2 per cent from last year to 73,215 and rose 5.6 per cent on a seasonally-adjusted basis to 67,636. Shaun Cathcart, CREA's senior economist, said the numbers indicate housing markets have settled down in recent months and prices are moderating. Sales and price growth, he said, are already showing signs of tapering off in August because of the Bank of Canada's mid-July interest rate hike and messaging suggesting that inflation will be well above its two per cent target for longer than it expected.
"We're probably looking at another round of 'back to the sidelines' for some buyers until there's a higher level of certainty around interest rates going forward," Cathcart said in a press release.But with inflation above three per cent in July and the possibility of another interest rate increase looming, Toronto broker Cailey Heaps said buyers with mortgage approvals already in hand will be keen to take advantage before their rate increases in the fall.
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