House prices bounced up 6.5% in June compared to last year, CREA says
Sales up by two-thirds from May's level
Change in average price in year up to June 2020
The figures below have been seasonally adjusted by CREA
Quebec
13.24%
New Brunswick
12.82%
Yukon
12.4%
Ontario
11.24%
British Columbia
9.79%
Nova Scotia
9.49%
Canada
6.86%
Prince Edward Island
5.8%
Saskatchewan
2.01%
Manitoba
1.33%
Alberta
−1%
Newfoundland & Labrador
−8.69%
Northwest Territories
−14.95%
Chart: Pete Evans/CBC Source: CREA
CREA says the
average price figure can be misleading because it can be easily skewed
by sales in big and expensive markets like Toronto and Vancouver. So the
group calculates another number, known as the House Price Index, which
strips out those effects and adjusts for the mix of different homes in
different markets.
The HPI went up at an annual rate of 5.4 per cent in June, CREA said.
"Generally speaking, prices are re-accelerating east of Manitoba with the exception of Toronto for now," CREA said. "B.C. prices are also picking up with the exception of Vancouver. Home prices are declining in Calgary, while elsewhere on the Prairies prices are either flat or rising."
Economist Doug Porter with Bank of Montreal says the numbers were undeniably strong, but it's still unclear as to whether they are just a temporary blip.
"Home sales, prices and starts have effectively regained all the ground lost during the shutdown," he said.
"However, fair point that some of this outsized strength is simply pent-up demand for the lost sales from the key spring season, and it remains to be seen if the momentum can be maintained."
Rishi Sondhi with TD Bank said booming sales of high-end homes are a sign that moneyed buyers have indeed returned, for now.
"There was a resurgence in activity in the high end of the market," he said. "This reinforces the notion that markets are getting stronger, as it's not just low-priced inventory that's moving."
Still, he says he has his doubts that the strong showing can continue, given the economic headwinds that Canada is facing from COVID-19.
"In our view, as long as unemployment is elevated, population growth slows, and CMHC measures remain in place, growth in home sales and prices is likely to be subdued after this initial burst."
The HPI went up at an annual rate of 5.4 per cent in June, CREA said.
"Generally speaking, prices are re-accelerating east of Manitoba with the exception of Toronto for now," CREA said. "B.C. prices are also picking up with the exception of Vancouver. Home prices are declining in Calgary, while elsewhere on the Prairies prices are either flat or rising."
Economist Doug Porter with Bank of Montreal says the numbers were undeniably strong, but it's still unclear as to whether they are just a temporary blip.
"Home sales, prices and starts have effectively regained all the ground lost during the shutdown," he said.
"However, fair point that some of this outsized strength is simply pent-up demand for the lost sales from the key spring season, and it remains to be seen if the momentum can be maintained."
Rishi Sondhi with TD Bank said booming sales of high-end homes are a sign that moneyed buyers have indeed returned, for now.
"There was a resurgence in activity in the high end of the market," he said. "This reinforces the notion that markets are getting stronger, as it's not just low-priced inventory that's moving."
Still, he says he has his doubts that the strong showing can continue, given the economic headwinds that Canada is facing from COVID-19.
"In our view, as long as unemployment is elevated, population growth slows, and CMHC measures remain in place, growth in home sales and prices is likely to be subdued after this initial burst."
No comments:
Post a Comment