July was a record-setting month for home sales, according to new numbers from the Canadian Real Estate Association (CREA).
The association says 62,355 homes were sold last month – the highest monthly sales figure on record going back more than 40 years.
July sales were up more than 30 per cent year-over-year and up 26 per cent from June.
Shaun Cathcart, a senior economist with CREA, said much of what we are seeing is the snapback in activity which would have happened earlier this year.
“Recall that before the lockdowns, we were heading into the tightest spring market in almost 20 years,” said Cathcart in a news release.
“Things may have gone quiet for a few months, but ultimately the market we’re seeing right now is mostly the same one we were heading into back in March.”
In Canada’s largest markets, the Greater Toronto Area, Greater Vancouver, Montreal, the Fraser Valley and Hamilton-Burlington all saw month-over-month increases of more than 30 per cent.
The national average price for homes sold in July also hit a record $571,500, up 14.3 per cent from the same month last year.
Cathcart said despite the surge in sales last month, inventory is at a 16-year low as many sellers choose not to list their properties due to COVID-19.
In fact, the number of months of inventory – how long it would take to liquidate current inventories at the current rate of sales activity – is 2.8 months, the lowest reading on record.
“Some purchases will no doubt be delayed, but the new-found importance of home, lack of a daily commute for many, a desire for more outdoor and personal space, room for a home office, etc. will certainly also spur activity that otherwise would not have happened in a non-COVID-19 world,” said Cathcart.
The number of newly listed homes climbed by another 7.6 per cent in July compared to June, according to CREA.
