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Summer Break is in Session: What Canada’s Rollercoaster Real Estate Market is Telling Us
No doubt you have heard about Canada’s incredibly hot real estate market in 2021. Throughout the country we are experiencing massive sales, low months of inventory and rising month-over-month prices.
But is the honeymoon over?
Q2 data suggests that, month-over-month, the housing market is starting to cool. In June, sales weren’t quite as high, average and benchmark price may have dipped slightly and there are whispers in the media about the sudden cooling-off of the Canadian real estate market.
At first glance, it does appear that the market is starting to cool down.
I would attribute this to a couple different reasons. Firstly, as provinces begin to loosen quarantine restrictions, people are focused on enjoying their summer rather than spending time looking at real estate. Secondly, buyers, sellers and agents alike are tired from the first 6 months of 2021.
Fatigue mixed with summer distractions simply means people everywhere are enjoying their summer. This doesn’t mean that a real estate crash is imminent. In fact, when summer ends, I could very well imagine markets picking up speed once again.
One thing is for sure, although June might have slowed down slightly, year-over-year numbers are still staggeringly high. Just take a look at my Q2 market updates below to see what I mean.
It’s a beautiful life, make it count!
Rich
TORONTO, ON
The Toronto Regional Real Estate Board is reporting a month-over-month 7.1% decrease in sales in the month of June. Month-over-month average price also decreased slightly by 1.7% and sits at $1,089,536. Months of inventory stayed the same at 1.
Other TRREB Highlights:
Year-over-year sales increased 27.6% from 8,701 in June, 2020 to 11,106 in June, 2021.
Year-over-year average price increased 17% from $930,869 to $1,089,536.
Video Highlights:
Q2 2020 vs. 2021 year-over-year sales.
Q2 2020 vs. 2021 year-over-year average price.
Year-to-date sales comparison from 2019 to 2021.
Click here to download Toronto’s Q2 2021 market slides.
CALGARY, AB
The Calgary Real Estate Board reported a pullback from May, 2021. Month-over-month sales dropped 2.5%, months of inventory rose 4.6% and now sits at 2.4, which is still an incredibly strong sellers market. Average price did fall slightly by 3.3%, now sitting at $494,111.
Other CREB Highlights:
Year-over-year sales increased 66.9% from 1,747 in June, 2020 to 2,915 in June, 2021.
Year-over-year average price increased 7.3% from $460,442 to $494,111.
Video Highlights:
Q2 2020 vs. 2021 year-over-year sales
Q2 2020 vs. 2021 year-over-year average price
Year-to-date sales comparison from 2019 to 2021
Click here to download Calgary’s Q2 2021 market slides.
EDMONTON, AB
The REALTOR® Association of Edmonton is reporting similar month-over-month data for the month of June. Sales were down slightly, by just 0.4%, going from 2,741 in May, 2021, to 2,729 in June. Months of inventory rose 6.3%, now sitting at 2.9 and average price dipped slightly by 0.8%, going from $401,390 in May, 2021 to $398,229.
Other RAE Highlights:
Year-over-year sales increased 33.1% from 2,051 in June, 2020 to 2,729 in June, 2021.
Year-over-year average price increased 10.6% from $360,179 to $398,229.
Video Highlights:
Q2 2020 vs. 2021 year-over-year sales.
Q2 2020 vs. 2021 year-over-year average price.
Year-to-date sales comparison from 2019 to 2021.
Click here to download Edmonton’s Q2 2021 market slides.
VANCOUVER, BC
The Real Estate Board of Greater Vancouver is reporting similar numbers as the rest of the country, however, it is one of the few markets in Canada where benchmark price increased month-over-month.
Month-over-month data shows that sales dropped 11.9% to 3,762 from 4,268 in May, 2021. Months of inventory increased 12.1%, now sitting at 2.9 and benchmark price increased slightly by 0.2%, now resting at $1,175,100.
Other REBGV Highlights:
Year-over-year sales increased 54% from 2,443 in June, 2020 to 3,762 to June, 2021.
Year-over-year benchmark price increased 14.6% from $1,025,300 to $1,175,100.
Video Highlights:
Q2 2020 vs. 2021 year-over-year sales.
Q2 2020 vs. 2021 year-over-year benchmark price.
Year-to-date sales comparison from 2019 to 2021.