Canada's housing market is 'moderating' — but still blazing hot

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Sales and prices are up sharply from a year ago, but a trade group finds a positive spin

Well, it turns out that “cooling,” when it comes to Canadian real estate, is about the same as throwing your Brita at an active volcano.

Still, this was CREA’s headline: “Housing market continues to moderate in May.” Here’s what a “moderating” Canadian housing market looks like.To be fair to CREA, total home sales across Canada did slide 7.4 per cent from April to May, so the pace of selling has fallen steadily since March, when a record 76,259 homes changed hands.Article content

One of the most important metrics for taking a market’s temperature is its sales-to-new listings ratio. The higher that is, the faster homes are being snatched up by buyers. The national average selling price in May was just over $688,000. While that was almost $30,000 lower than the record established in March, it was up about 40 per cent from May 2020.How much “cooler” did things get last month in Canada’s craziest housing market? Let’s put it this way: Ontario smashed its previous sales record for May.

 

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