Slumping home sales in Canada saw an uptick in June, marking the first substantial month-over-month increase of 2018, according to a new study published on Monday by the Canadian Real Estate Association.

Lead by a surge of activity in Toronto, home sales leaped 4.1 percent between May and June while the average sales price for a home in Canada decreased by 1.3 percent year over year, according to the study.

Home sales across Canada have struggled to reach the heights of the previous five years, largely due to tightening regulations on home mortgage lending and rising interest rates. Overall sales activity across Canada remains 11 percent below 2017 and nearly 7 percent below normal activity in June.

“This year’s new stress-test on mortgage applicants has been weighing on homes sales activity,” said Canadian Real Estate Association President Barb Sukkau. “However, the increase in June suggests its impact may be starting to lift. The extent to which the stress-test continues to sideline homebuyers varies by housing market and price range.”

Courtesy of Canadian Real Estate Association.

The modest uptick, however, could signal a thaw in the housing market. While the number of newly listed homes dropped 1.8 percent in most major Canadian cities, June’s activity surge evened the sales-to-new-listings ratio to 54.3 percent.

Courtesy of Canadian Real Estate Association.

“The national increase in June home sales suggests activity may indeed be starting to turn the corner,” said Gregory Klump, CREA’s chief economist. “Even so, the number of homes trading hands has a long way to go before it returns to levels posted in recent years.”

In Toronto, home sales surged by 17 percent, thanks in part to a modest decline in pricing across Greater Toronto.

“Looking ahead, home sales activity and price gains will likely be held in check by higher interest rates,” Klump said.

Email Veronika Bondarenko

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×