Pamela Vasiliu
Sales Representative

RE/MAX Professionals Inc.
Independently owned and operated.

Date: Friday June the 22nd, 2018 



July Market Upate - Home Prices Drop 2%

August 16, 2012 - Updated: August 16, 2012


Vancouver’s cooling markets was felt across the country in July with home prices down 2 per cent over a year earlier, despite strong gains in many Canadian housing markets.

Compared to Vancouver, Toronto prices held relatively steady with the average price of a GTA home slipping just slightly in July to a seasonally adjusted $494,451 from $496,804 in June, according to statistics from the Canadian Real Estate Association.

Actual home prices were up almost 4 per cent in July from a year earlier, with sales down 4.4 per cent and listings up 11 per cent.

But Vancouver home prices were down more than 12 per cent year over year when adjusted for seasonal fluctuations and sales were down by more than 18 per cent.

The average Vancouver house cost $667,462 in July compared to $761,673 a year earlier, according to a CREA report released Wednesday.

“Recent changes to mortgage regulations were widely expected to temper sales and prices in Greater Toronto and Greater Vancouver, and the data released today confirms that,” CREA president Wayne Moen said.

"Sales and price trends can be very different from one market to the next, and run counter to national trends,” Moen added.

The actual, not seasonally adjusted, average price of a home in Canada was $353,147 in July, down 2 per cent from a year earlier. But if Vancouver’s deflating housing market was removed from the mix, prices would actually be up 1.1 per cent year over year, CREA notes.

Tougher lending rules, introduced by Ottawa specifically to cool Toronto’s condo market and Vancouver’s overheated housing market, just kicked in July 9 but are already having an impact on first-time buyers, realtors say.

The shorter amortization periods have driven up monthly carrying costs to the point where some first-time buyers are having difficulty qualifying for financing.

“As the linchpin of the housing market, lower first-time buying activity will have knock-on effects over the rest of the market,” said CREA economist Gregory Klump, noting that that could make it tougher for move-up buyers to sell their current home.

Single-family homes remained the undisputed king of the block: Two-storey homes appreciated by almost 6 per cent and one-storey homes were up 5.6 per cent in July over a year earlier, compared to 2.5 per cent and 2.2 per cent gains respectively for townhouses and condos.

Overall, Canadian housing markets remained in balanced territory, although Calgary’s booming economy saw sales activity jump almost 27 per cent year over year, bested only by Thunder Bay where sales activity was up 29.2 per cent.

Average sale prices in July were up from levels of a year ago in about seven of every 10 local markets.


Tagged with: real estate weekly reports neighborhoods market toronto
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