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Canadian Real Estate Sales Drop Over 11%, BC Home To Biggest Declines

Canadian real estate sales are slowing in the country?s biggest markets

Daniel Wong
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Canadian real estate sales are slowing in the country’s biggest markets. Canadian Real Estate Association (CREA) numbers show June 2018 saw large declines compared to last year. Most of Canada’s major markets faced declines, but British Columbia bared the brunt of them.

Canadian Real Estate Sales Drop Over 11%

Canadian real estate sales are still down bigly from last year. CREA reported 47,413 sales in June, down 6.37% from the month before. This represents an 11.12% decline compared to the same month last year. The monthly drop is fairly normal, but the decline from last year isn’t. Over the past five years, the annual numbers have only dropped twice – this year, and last year.

Canadian Real Estate Sales

 

Quebec and Toronto Real Estate Lead With Minor Gains

The markets making the biggest gains were in Quebec and Ontario. Quebec City came in at 546 sales in June, up 3.61% from last year. Toronto reported 8,082 sales in June, up 1.35% compared to last year (which is half what TREB reported themselves). Montreal reported 4,081 sales, up just a teensy 0.64%. Yup, those are the country’s leaders rights now.

Canadian Real Estate Sales By Market

 

British Columbia’s Real Estate Markets Lead For Sales Declines

British Columbia is home to the biggest declines in sales across Canada. Fraser Valley reported 1,380 sales in June, a 44.11% decline from last year. Vancouver came in at 2,467 sales, a 37.59% decline from last year. Victoria reported 678 sales, a 29.52% decline from last year. The industry is blaming a policy measure that cracks down on second homes, but seriously? We thought the industry was saying there’s no empty homes in BC? Strange that it would be so impactful.

Canadian Real Estate Sales By Market – June 2018

 

Canadian real estate sales are showing minor improvements on a national level. The declines are getting smaller, but they’re still declines. Rising interest rates, policy measures, and availability of credit aren’t short-term issues. They’ll likely persist until a change in the macro environment – good or bad.