April sales were down in 60 per cent of all markets, which was “overwhelmingly” led by B.C.’s lower mainland and markets in and around Ontario’s Greater Golden Horseshoe region, CREA said
VANCOUVER – April home sales dropped to a seven-year low for the month, the kick-off to the busy spring real estate season, as both sales and prices saw double-digit annual declines, the Canadian Real Estate Association reported Tuesday, reported Canadian Press.
Sales sank 13.9 per cent year-over-year and the national average sale price dropped by 11.3 per cent year-over-year to just over $495,000. But excluding large declines in the pricey Vancouver and Toronto markets, the national average price was down 4.1 per cent to $386,100.
Sales also fell 2.9 per cent between March and April, bringing the total number of sales to 36,297.
Listings with CREA members fell by 4.8 per cent to 67,616 — a nine-year low for the month — a sign that the flurry of activity that usually kicks off the spring real estate market didn’t materialize in April. The large decline in new listings has also helped to keep 60 per cent of local markets in a balance between buyers and sellers.
The organization representing about 100,000 real estate agents across Canada blamed a new mortgage stress test that came into effect at the beginning of this year for the majority of the drop. It has long been critical of government intervention in the housing market at both the federal and provincial levels.
Policymakers at the Bank of Canada and the federal banking regulator have said the stress test is intended to reduce the risk of mortgage defaults if interest rates rise.
April sales were down in 60 per cent of all markets, which was “overwhelmingly” led by B.C.’s lower mainland and markets in and around Ontario’s Greater Golden Horseshoe region, CREA said.
That number is well below the April averages for markets in B.C. and Ontario that overheated last year, causing both provinces to spring into action to cool the sector.
