Canadian Home Sales Decline Further in August

According to statistics released yesterday by The Canadian Real Estate Association (CREA), national homes sales dropped for a fourth consecutive month in August 2016.

Data shows that the number of homes sold through the Canadian MLS Systems declined by 3.1 per cent month-over-month in August. This is the largest drop since December 2014. The decline in August puts national home sales activity at 6.9 per cent below the record set in April 2016.

Sales activity dropped from levels in the previous month in close to 60 per cent of all markets in August, led by a sharp decline in the Greater Vancouver region after the new property transfer tax on homes bought by foreign buyers was introduced.

The Canadian Real Estate Association president Cliff Iverson stated that the unanticipated introduction of the new property tax on homes bought by foreign buyers in the Metro Vancouver area has built a cloud of uncertainty for buyers and sellers.

Gregory Klump, CREA's Chief Economist said sales of single family homes were already cooling prior to the implementation of the new land transfer tax on foreign buyers in Metro Vancouver.

According to CREA, the number of new listings dropped by 2.7 per cent in August in comparison to the previous month (July). Although new inventory was down in more than half of all local markets, declines in Greater Toronto, Lower Mainland and Montreal far exceeded the monthly rise in new listings in less active markets.

Highlights:

*National home sales fell 3.1% from July to August.

*Actual (not seasonally adjusted) activity came in 10.2% above August 2015.

*The number of newly listed homes declined 2.7% from July to August.

*The MLS® Home Price Index (HPI) rose 14.7% year-over-year in August.

*The national average sale price climbed 5.4% in August from one year ago.

Reference:

CREA

Canadian Real Estate Association