Home Sales Up Nearly 400% Since Start of Year In Some Canadian Cities

In anticipation of falling interest rates, home sales and prices began to rise across Canada in February as sidelined buyers returned to the market. Although the Bank of Canada reignited its rate hike campaign in June, both metrics have continued to climb.

According to the latest figures from the Canadian Real Estate Association (CREA), home sales rose 1.5% month-over-month in June, while the Aggregate Composite MLS Home Price Index climbed 2% -- a "large increase for a single month."

From January to June, the unexpectedly frenzied spring market led sales activity to soar nearly 400% in some cities, while prices increased by as much as 19%.

With purchasers seemingly unperturbed by rising rates, Zoocasa compared home prices and sales activity from January and June to determine where buyers have bounced back.

Nationally, home sales have more than doubled, up 139.62% in June compared to January. But, of the 23 cities included in the real estate agency's report, 15 have seen even greater gains, while only one has seen sales rise by less than 100%.

Guelph experienced the most significant increase -- the number of homes sold in June was 387.38% higher than in January -- followed by North Bay, which recorded a 366.67% increase in sales over the same time period.

As the report notes, though, the aforementioned markets are on the smaller side and saw fewer overall sales -- 424 and 126, respectively, in June. When looking at larger cities with over 1,000 sales per month, Fraser Valley experienced the largest increase in activity, at 214.46%.

The Greater Toronto Area saw the highest number of home sales overall in June, at 7,480, a 141.29% jump from January, while Calgary's 3,996 sales marked a 162.38% increase from January.

The only region to not experience at least a doubling of sales was the Quebec CMA; activity was up 42.8% in June compared to January.

With sales soaring, and inventory low, prices have begun to creep up as well. The national average price hit $760,600 in June, a 7.89% increase from January.

In Sudbury, where sales have risen 195% since the start of the year, prices have increased by 19.22%. Despite the jump, the city's average home price of $456K is still considerably affordable.

Sitting at a comparable $408,900 in June, prices in North Bay have risen 11.57% since January. Even Quebec, with its comparatively slower increase in sales, saw prices rise 6.66% to $337,800 from January to June.

Concerning large markets, Fraser Valley once again led the way -- the city's average home price hit $1,040,900 in June, a 10.82% jump from January. The GTA trailed, with prices increasing 9.41% to $1,171,300 from January to June.

Montreal sat at the other end of the spectrum, with prices rising just 3.45% to $516,400. The city saw sales jump 102.51% from January to June.

Source