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BramptonHousingMarket.com

May Home sales fall compared with April

May Home sales fall compared with April

Canadian home sales started off the year at a torrid pace, fuelled by Vancouver and Toronto, but the Canadian Real Estate Association says sales in the country’s hottest markets are expected to slow in the second half in the face of high prices and a shortage of available properties.

“Activity should begin to rebalance away from B.C. and Ontario as supply shortages put upward pressure on home prices and constrain transactions even as housing demand remains strong in these provinces and interest rates remain low,” CREA said in its latest outlook Wednesday.

“Accordingly, sales activity over the second half of the year is expected to ease in B.C., Ontario and on a national basis.”

Still, due to the strong start to the year, the association raised its full-year forecast for home sales to a record 536,400, an increase of 6.1 per cent. That compared with its March forecast calling for an increase of just one per cent to 511,400.

The new forecast came as CREA reported that home sales through its MLS system dropped 2.8 per cent month-over-month in May. But compared with a year ago, sales in May were up 9.6 per cent and stood 15.1 per cent above the 10-year average for the month.

TD Bank economist Diana Petramala said even with the drop in sales in May, the spring selling season has been a hot one for Ontario and British Columbia.

“In fact, May’s decline looks more like a supply story rather than a demand story, with not enough homes on the market to fulfil what appears to be insatiable demand,” Petramala said. read more at bramptonguardian.com