National home sales fell 2.9 per cent year over year and by 1.3 per cent since June, according to Canadian Real Estate Association (CREA) figures released August 15.
Greater Vancouver and the Fraser Valley saw the biggest declines, but the CREA reported that sales were down from levels one year earlier in about 60 per cent of all Canadian markets, with Calgary and Edmonton following on the heels of the Lower Mainland markets.
Despite this, the national MLS® Home Price Index (HPI) rose 14.3 per cent year-over-year in July and the national average sale price climbed 9.9 per cent from one year ago to $480,743.
“Home sales continued to trend lower while price gains further accelerated in the Lower Mainland of British Columbia,” said Gregory Klump, CREA’s chief economist. “This suggests that sales are being reined in by a lack of inventory and a further deterioration in affordability.
“The new 15 per cent property transfer tax on Metro Vancouver home purchases by foreign buyers took effect on August 2, so it will take some time before the effect of the new tax on sales and prices can be observed. That said, the new tax will do little in the short term to increase the supply of homes.”
To see the CREA’s report, including a breakdown by city and region, click here.
