In spite of an interest rate increase in June, housing prices have continued to climb in Canada. The national average home price hit $760,600 in June 2023 – around $9,000 less than the July 2022 price and just $2,900 less than it was in December 2021 when rates were at their lowest.
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More notable, however, is that the number of sales has skyrocketed since the beginning of the year. Following a slow 2022, national sales have increased by well over 100% in almost all major Canadian markets since January, despite the continually low inventory and the ever-increasing prices.
- Read: Renting vs. Buying: Where Monthly Mortgage Payments are Comparable to Monthly Rent Across Canada
Despite less than favourable conditions for buyers in some cities, the reality is that in many markets across the country, homes are flying off the market. Zoocasa analyzed home sales and prices in 23 regional markets across Canada to determine where the most homes are being sold.
Home Sales Have Doubled Since January
National sales have more than doubled since January. There were 50,155 homes sold across the country in June, 139.62% more than were sold in January. The highest increase in sales is in Guelph, where the number of homes sold has increased by 387.38% compared to January, with 424 homes trading hands in June. North Bay has the second-highest increase in sales numbers at 366.67%, with 126 sales. It’s important to note that as smaller markets with fewer sales, increases in pure sales are likely to lead to higher percentage increases when compared to larger markets. In terms of larger markets, where over 1,000 homes have been sold, Fraser Valley has had the largest increase. In June there were 1,849 home sales, an increase of 214.46% from January.
Of all the markets analyzed, only Quebec CMA had sales numbers less than double, increasing by 42.8% from January, with 744 homes being sold in June. Windsor-Essex had an exact 100% increase from January, as 596 homes traded hands in the region.
Sales Growth is Driving Prices Upwards
Sales and price increases go hand-in-hand, particularly as inventory is still below the long-term average in many major markets. Greater competition leads to higher prices, which is why home prices have increased in every region we covered. In Sudbury, prices increased by 19.22% to $456,000, where home sales are also up 195% since January. The smallest price increase was in Montreal, up 3.45% to $516,400. Home sales still increased by over 102% in the city. Even in the market with the smallest increase in sales numbers, Quebec, home prices have still increased by 6.66% since January.
- Read: Analyzing the Impact: Can House Prices Decline if Canada’s Population is Growing at Record Rates?
If you’re looking to enter one of these markets, it’s important to speak with a local realtor who can give you specific information and guidance about the local real estate market. Give us a call today to discuss your home-buying plans.
