{"id":303647,"date":"2024-08-26T19:01:24","date_gmt":"2024-08-26T19:01:24","guid":{"rendered":"https:\/\/wahi.com\/ca\/en\/?p=303647"},"modified":"2024-11-07T15:16:21","modified_gmt":"2024-11-07T15:16:21","slug":"what-you-need-to-know-about-canadian-real-estate-this-summer","status":"publish","type":"post","link":"https:\/\/wahi.com\/ca\/en\/learning-centre\/real-estate-101\/buy\/canadian-real-estate-market-summer-2024\/","title":{"rendered":"What You Need to Know about Canadian Real Estate This Summer"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”0px||3px|||” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width=”95%” max_width=”100%” custom_margin=”||-24px||false|false” custom_padding=”55px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb-link title=”Real Estate 101″ _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjcyMiJ9fQ==@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”Buy” _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjE2MzIifX0=@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IiIsImFmdGVyIjoiIn19@” _builder_version=”4.18.0″ _dynamic_attributes=”title” _module_preset=”default” module_text_color=”#686E6E” global_colors_info=”{}”][\/wahi_breadcrumb-link][\/wahi_breadcrumb][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”16px||4px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _dynamic_attributes=”content” _module_preset=”default” header_font_size=”3.5rem” header_line_height=”4.5rem” header_font_size_tablet=”42px” header_font_size_phone=”2rem” header_font_size_last_edited=”on|phone” header_line_height_tablet=”4.5rem” header_line_height_phone=”2.75rem” header_line_height_last_edited=”on|desktop” global_colors_info=”{}”]@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IjxoMT4iLCJhZnRlciI6IjwvaDE+In19@[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”1px||1px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_socialsharing _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/wahi_socialsharing][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”15px||0px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.20.2″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” text_font_size_tablet=”21px” text_font_size_phone=”16px” text_font_size_last_edited=”on|desktop” header_2_font_size_tablet=”36px” header_2_font_size_phone=”25px” header_2_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]

It\u2019s been an up-and-down (but mostly down) season for Canadian housing. Here\u2019s what to make of the latest data from the Canadian Real Estate<\/a> Association.<\/span><\/p>[\/et_pb_text][et_pb_text _builder_version=”4.24.2″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” custom_margin=”||11px|||” text_font_size_tablet=”21px” text_font_size_phone=”16px” text_font_size_last_edited=”on|phone” header_2_font_size_tablet=”36px” header_2_font_size_phone=”25px” header_2_font_size_last_edited=”on|phone” global_colors_info=”{}”]

By Josh Sherman<\/a>\u00a0<\/span>| 4 minute read<\/p>[\/et_pb_text][et_pb_post_title title=”off” author=”off” date_format=”M j” categories=”off” comments=”off” featured_image=”off” _builder_version=”4.18.0″ _module_preset=”default” custom_margin=”||17px|||” global_colors_info=”{}”][\/et_pb_post_title][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”0px||3px|||” da_disable_devices=”off|off|off” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width_tablet=”” width_phone=”100%” width_last_edited=”on|desktop” custom_padding=”0px||9px|||” global_colors_info=”{}” width__hover_enabled=”off|desktop”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9mZWF0dXJlZF9pbWFnZSIsInNldHRpbmdzIjp7fX0=@” align=”center” force_fullwidth=”on” _builder_version=”4.18.0″ _dynamic_attributes=”src” _module_preset=”default” custom_margin=”1px||29px|||” border_radii=”on|32px|32px|32px|32px” border_radii_tablet=”on|32px|32px|32px|32px” border_radii_phone=”on|0px|0px|0px|0px” border_radii_last_edited=”on|desktop” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.20.2″ _module_preset=”default” text_font_size=”1.13rem” text_line_height=”1.75rem” custom_margin=”-18px||2px|||” custom_padding=”||7px||false|false” custom_padding_tablet=”||7px||false|false” custom_padding_phone=”|15px||15px|false|true” custom_padding_last_edited=”on|phone” text_font_size_tablet=”1.13rem” text_font_size_phone=”0.9rem” text_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]

Recent home-sales data from the Canadian Real Estate Association suggest the real estate market cooled as the mercury rose.<\/span><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”1px||39px|||” da_disable_devices=”off|off|off” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”16px||16px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.20.2″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” text_font_size_tablet=”21px” text_font_size_phone=”16px” text_font_size_last_edited=”on|phone” header_2_font_size_tablet=”36px” header_2_font_size_phone=”25px” header_2_font_size_last_edited=”on|phone” global_colors_info=”{}”]

It looks like the Canadian housing market is on vacation.<\/span>
<\/span>
<\/span>After sprouting some <\/span>green shoots to start the summer<\/span><\/a> with an uptick in home sales, the latest data from the Canadian Real Estate Association suggests the <\/span>housing market wilted in July<\/span><\/a>. <\/span>
<\/span>
<\/span>\u201cBuyers didn\u2019t come to market with the same enthusiasm seen in the past this July. They retreated back to the sidelines after a solid sales pickup in June,\u201d suggests RBC Economist Rachel Battaglia in a <\/span>response to the data<\/span><\/a>.<\/span>
<\/span>
<\/span>Below, <\/span>Wahi rounds up commentary from Battaglia and other market-watchers to keep you posted on the latest developments in Canadian real estate. <\/span>Here\u2019s what you need to know as we enter the last leg of summer.<\/span><\/p>\n

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1. Interest rates have moved lower, but so have national home sales \u2014 for now.
\u00a0<\/b><\/h2>\n

The Bank of Canada followed its June rate cut by hacking another 25 basis points off the overnight rate towards the end of July. However, many potential homebuyers appeared to sit tight. <\/span>
<\/span>
<\/span>Countrywide, home sales declined 0.7% on a month-over-month basis, remaining 9% short of pre-pandemic activity, notes a <\/span>report from TD Economics<\/span><\/a>. On a seasonally adjusted basis, 38,626 homes changed hands across Canada last month, CREA indicates.<\/span>
<\/span>
<\/span>Although interest rates are lower, they\u2019re still above historical norms, and high home prices remain a barrier in many markets, suggests a separate <\/span>report from National Bank<\/span><\/a>. \u201cA downturn in activity might seem surprising in the light of two recent interest rate cuts and record population growth,\u201d the report reads. \u201cHowever, despite these favourable factors and renewed buyer confidence, affordability challenges remain as interest rates are still deep in restrictive territory.\u201d<\/span><\/p>\n


Given the BoC\u2019s latest rate cut was on July 24, more time is needed to see its impact on activity. \u201cAugust’s data will be telling, given that rates have continued their decline into this month,\u201d according to the TD Economics commentary.\u00a0<\/span><\/p>\n

 <\/p>\n

2. Canadian homebuyers have a lot more choice this summer.\u00a0<\/b><\/h2>\n

 <\/p>\n

This spring, the number of homes listed for sale began increasing, giving buyers a wide array of options. This trend has continued into the summer, with new listings reaching a 10-month high in July. In total, 183,450 homes were available for sale across Canada last month, according to CREA.<\/span>
<\/span>
<\/span>The reasons for the listings pileup, suggests RBC\u2019s Battaglia, are twofold. \u201cThe sting of high interest rates still seems to be forcing the hand of some sellers,\u201d the economist explains. <\/span>
<\/span>
<\/span>This has been especially true in the Toronto and Vancouver condo markets, where experts suspect <\/span>distressed investors are dumping units<\/span><\/a>. In both urban areas, new listings for all housing types soared about 20% year-over-year in July, with condo units accounting for a large chunk.\u00a0\u00a0\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On top of that, some homeowners look to be getting ready for what they hope is a busier market in the coming months. \u201cRate cuts may also be enticing more sellers to list their homes in anticipation of renewed demand,\u201d Battaglia adds. <\/span><\/p>\n

 <\/p>\n

3. Sellers are still stubborn on prices. \u00a0\u00a0<\/b><\/h2>\n

 <\/p>\n

Buyers may have more choice, but they aren\u2019t necessarily negotiating big discounts \u2014 though that depends on the locale and property type, of course. The average price of a home in Canada was $667,317 in July, roughly unchanged from the previous month (-0.1%) and a year ago (-0.2).

<\/span><\/p>\n

 <\/p>\n

<\/span><\/p>\n

<\/span><\/p>\n

With interest rates expected to continue to fall, sellers, it seems, are holding out for a demand-side rebound even if they have already decided to list their homes for sale. \u201cResilience of prices has remained a key theme in the market as sellers are unwilling to move lower given the latent demand on the sidelines,\u201d writes Central 1 Chief Economist Bryan Yu<\/a> in a report.\u00a0<\/p>\n

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We put the real<\/em> back in real estate.<\/span><\/h2>[\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.20.2″ _module_preset=”default” text_text_color=”#e8db3a” text_font_size=”20px” text_orientation=”center” max_width_tablet=”” max_width_phone=”90%” max_width_last_edited=”on|phone” module_alignment=”center” min_height=”35.8px” custom_margin=”5px||35px||false|false” custom_padding=”||||false|false” custom_padding_tablet=”” custom_padding_phone=”|26px||26px|false|true” custom_padding_last_edited=”on|phone” text_font_size_tablet=”” text_font_size_phone=”0.85rem” text_font_size_last_edited=”on|phone” module_alignment_tablet=”” module_alignment_phone=”center” module_alignment_last_edited=”on|phone” global_colors_info=”{}”]

Join Wahi today and find out how easy it is to get real estate in Canada.<\/span><\/p>[\/et_pb_text][et_pb_button button_url=”\/ca\/en\/real-estate\/sign-up” button_text=”Get Started” button_alignment=”center” _builder_version=”4.20.2″ _module_preset=”default” custom_button=”on” button_text_size=”17px” button_border_radius=”7px” button_letter_spacing=”1px” custom_margin=”||||false|false” custom_padding=”|40px||40px|false|true” button_text_size_tablet=”” button_text_size_phone=”13px” button_text_size_last_edited=”on|phone” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.20.2″ _module_preset=”default” height=”1px” custom_padding=”0px||0px||false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ admin_label=”Column” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_button button_text=”post popup button” button_alignment=”right” module_id=”dipi_popup_id_295151″ _builder_version=”4.20.2″ _module_preset=”default” positioning=”absolute” horizontal_offset=”-10000000px” z_index=”-1000000″ global_colors_info=”{}”][\/et_pb_button][et_pb_code _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”]