Quantity of homes for sale still below historical 10-year average
Changes to monthly sales activity was generally quite small for larger urban centres, in July. Interestingly, declines in Calgary and the Greater Toronto Area (GTA) were mostly offset by gains in Edmonton and Hamilton-Burlington.
As of the end of July 2024, there were approximately 183,450 properties listed for sale on all Canadian MLS systems, up 22.7% from a year earlier. While more properties are now on the market, there is still quite a shortage, with the current quantity still about 10% below the historical average of 200,000 or more, for this time of the year.
Unfortunately, the hope for more inventory didn't transpire with a month-over-month new listing increase of only 0.9% in July. Most of the increased inventory could be attributed to specific urban centres, such as Calgary, AB.
Fewer listings and stagnant sales meant sales-to-new listings ratio eased a bit
With new listings up slightly and sales down slightly, the national sales-to-new listings ratio eased back to 52.7% in July, compared to 53.5% in June.
To put this in perspective, the long-term average for the national sales-to-new listings ratio is 55%. In general, the industry is considered to be healthy when the sales-to-new listings ratio falls between 45% and 65% as this is considered the range that reflects balanced housing market conditions.
Months of inventory
While sales-to-new listings is an important indiction, so is the months of inventory. This calculation tracks how long it would take for all current listings to be sold (if no new listings were added to the market).
As of July 2024, there was 4.2 months of inventory, on a national basis, which remained unchanged since June 2024. However, the current months of inventory is still below the long-term average, with is about five months.
Housing market prices
While prices were up slightly at the national level, they were held back by reduced activity in the largest and most expensive provinces of British Columbia and Ontario. Still, it should be noted that in some regions prices are rising.
As of July, the actual (not seasonally adjusted) national average home price was $667,317. Based on a year-over-year comparison, the July 2024 average home price dropped 0.2% from July 2023.
Home buyers be prepared: Sales activity will increase before end of this year
"While it wasn't apparent in the July housing data, the stage is increasingly being set for the return of a more active housing market," explained James Mabey, chair of CREA. "At this point, many markets have a healthier amount of choice for buyers than has been the case in recent years, but the days of the slower and more relaxed house hunting experience may be somewhat numbered."
— with files from Romana King
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