May home sales, prices rise year-over-year as real estate market heats up

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Canada's real estate market continued to heat up in May with home sales posting their first year-over-year increase since June 2021 and the average price seeing its first year-over-year gain in a year.

The association said the number of home sales in May totalled 54,241, a 1.4 per cent gain compared with the same month last year.The increase came after months of buyers sitting on the sidelines awaiting a bottom for home prices. But as they waited, the Bank of Canada hiked interest rates, helping push up mortgage rates. After pausing earlier this year, the central bank hiked rates again this month in a bid to tame inflation.

The actual national average home price was $729,044 in May, up 3.2 per cent from May 2022, CREA said.Despite the increases pointing to a rebound, Cerqua felt some aspects of the turnaround are still yet to be determined. Robert Kavcic, senior economist with BMO Capital Markets, interpreted the figures as a sign that new listings are "showing a bit of life," but he warned they are still about 16 per cent below the three-year pre-COVID average.

 

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