Home Sales See Slight Decrease

Home sales recorded over Canadian MLS Systems edged down a slight one per cent between July and August 2022. While this was the sixth consecutive month-over-month decline in housing activity, it was the smallest of the six as the national sales slowdown triggered by rising interest rates continues to moderate. It was close to an even split between the number of markets where sales were up and those where sales were down. Gains were led by the Greater Toronto. ON, Area (GTA) and a large regional mix of other Ontario markets. These were offset by declines in Greater Vancouver, BC; Calgary and Edmonton, AB; Winnipeg, MB; and Halifax-Dartmouth, NS. The actual (not seasonally adjusted) number of transactions in August came in 24.7 per cent below the same month last year. While still a large decline, it was smaller than the 29.4 per cent year-over-year drop recorded in July. The number of newly listed homes fell to 5.4 per cent on a month-over-month basis in August. This built on the 5.9 per cent decline noted in July, as some sellers appear content to stay on the sidelines until more buyers are ready to get back into the market. With sales little changed and new listings down in August, the sales-to-new listings ratio tightened to 54.5 per cent compared to 52.1 per cent in July. The August 2022 reading for the national sales-to-new listings ratio was very close to its long-term average of 55.1 per cent. There were 3.5 months of inventory on a national basis at the end of August, up slightly from 3.4 months at the end of July.