Canadian Home Sales Show Modest Increase in August, But Market Remains Steady
Canadian home sales saw a slight month-over-month increase of 1.3% in August, according to data released by the Canadian Real Estate Association (CREA). Despite this, the housing market remains in a holding pattern, with activity still down 2.1% compared to August of last year.
The Bank of Canada’s recent interest rate cuts in July provided a small boost to the market, but many buyers continue to wait for further reductions to improve affordability. CREA’s senior economist, Shaun Cathcart, noted that despite some signs of growth, the market has yet to experience a full recovery. Buyers are holding off as they anticipate further rate cuts and lower home prices.
New listings also saw a minor increase, rising 1.1% from July, while the national average home price for August was $649,100, relatively unchanged from last year.
Economists believe that significant market rebounds will only occur after additional interest rate cuts, with the current environment marked by stability in sales volume, listings, and home prices across most regions.