Figures out Thursday morning show house sales in this country continued to go downhill last month.
The Canadian Real Estate Association reported the number of homes trading hands via Canadian MLS® Systems fell by 3.1% month-over-month in August 2016 – the fourth consecutive drop and the largest since December 2014. Together with declines in each of the three previous months, the slowdown in August places national home sales activity 6.9% below the record set in April 2016.
Even so, says CREA, actual (that is to say, not seasonally-adjusted) activity came in 10.2% above August 2015.
Sales activity was down from levels in July in close to 60% of all markets in August, led by a steep decline in Greater Vancouver following the introduction of a new property transfer tax on homes purchased by foreign buyers.
Sales were up from year-ago levels in about three-quarters of all Canadian markets, led by Greater Toronto. At the other end of the pole, Greater Vancouver posted the largest year-over-year sales decline.
With sales and new listings both down by similar magnitudes in August, the national sales-to-new listings ratio was 61.6%, virtually identical from 61.8% in July. The ratio had previously been as high as 65.3% in May.
A sales-to-new listings ratio between 40% and 60%is generally consistent with balanced housing market conditions, with readings below and above this range indicating buyers’ and sellers’ markets respectively.
Related Stories
