National home sales activity declined 8.2% in June from the previous month, according to statistics released earlier this morning by the Canadian Real Estate Association. This figure takes into account seasonal differences in the real estate industry, the CREA says. Nearly 70% of local markets experienced a decline in sales. Toronto and Calgary were most affected.
“National home sales activity is easing due to fewer and more cautious first-time home buyers,” says CREA economist Gregory Klump. “With interest rates on the rise, housing affordability and home sales activity are expected to continue to erode over the second half of 2010,” he says. Still, Klump says the recovering economy and job market will provide support for housing activity and prices.
The number of newly listed homes in June 2010 declined by 6.8% from the previous month, following a monthly decline of 4.8% in May. The CREA says the declining trend in new listings will help maintain the balance between supply and demand, and temper home price volatility. The average price of a Canadian home sold rose 4.9% on a year-over-year basis in June to $342,662, reports the CREA.