Housing sales fall sharply in June

Steve Ladurantaye

The spring housing market ended with a gasp in June, as residential housing sales fell sharply across the country and the average resale price moved lower after months of record setting gains.

The Canadian Real Estate Association said the number of sales fell 8.2 per cent in June compared to May, led by lower activity in Toronto and Calgary. Sales slipped in 70 per cent of the markets surveyed.

The national average resale price, meanwhile, was $342,662, down 1.2 per cent from May’s record setting $346,881. Prices are still 4.9 per cent higher than they were last June.

“The housing market is becoming more challenging for sellers,” said CREA president Georges Pahud.

There were also more houses on the market in June for sellers to choose from, with the national inventory standing at 6.9 months on a seasonally adjusted basis, the highest level since March, 2009. That’s a measure of how long it would take to sell all homes at the current pace of sales.

“National home sales activity is easing due to fewer and more cautious first-time home buyers,” said CREA chief 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. While the pricing environment is becoming more challenging, a recovering economy and job market will provide support for housing activity and prices.”