According to the Canadian Real Estate Association (CREA), national home sales fell by 6.7% from May to June.
June sales were down 11.4% from June of 2016, though that number is not seasonally adjusted.
According to a release from the CREA, “June sales were down from the previous month in 70% of all local markets, led overwhelmingly by the Greater Toronto Area (GTA). Monthly declines were also posted in all surrounding Greater Golden Horseshoe housing markets, the Lower Mainland of British Columbia, Kingston, Montreal and Quebec City.”
Home sales fell in half of all Canadian markets, while sales rose in the cities of Calgary, Edmonton, London, Ottawa, Montreal, and Halifax, among others.
Prices still going up in much of the country
While most attention has been understandably focused on the Vancouver and Toronto markets, CREA notes that benchmark home prices are up in 11 of 13 housing markets across Canada that are tracked by the MLS.
The MLS Home Price Index (HPI) is up 15.8% from June 2016.
The average price of homes sold in June of 2017 was $504,458 – an increase of 0.4% from June of 2016. However, that figure is not seasonally-adjusted.
These latest numbers show that the Canadian housing market is exhibiting signs of weakness. This is no surprise, as the country is clearly seeing a housing bubble, and every bubble ends up bursting. The question now is how serious the damage will be when it bursts.
As I’ve noted before, the policies imposed by the elites have damaged middle income and working class Canadians, causing a massive build-up of debt as people struggle to maintain their standard of living. Low interest rates failed to generate strong growth, but have contributed to a housing bubble, and our increasingly ephemeral economy is being put at significant risk as its inherent vulnerability is exposed.
What goes up, must come down.