National home sales tick higher in July, but housing hurdles remain

By Staff | August 15, 2018 | Last updated on August 15, 2018
1 min read

The effect of new stress tests introduced this year for mortgage applicants may be fading slightly as national home sales rose in July.

Home sales were up 1.9% in July compared to June, the third consecutive monthly increase, according to Canadian Real Estate Association (CREA) statistics released Wednesday.

“Led by the Greater Toronto Area (GTA), more than half of all local housing markets reported an increase [in] sales activity from June to July,” says a CREA report.

Sales were down 1.3% year over year in July, reflecting fewer sales in B.C.’s urban centres.

The degree to which stress-testing continues to sideline homebuyers depends on location, housing type and price range, says CREA president Barb Sukkau in the report.

Stress-testing combined with rising rates will “likely prove to be difficult hurdles to overcome for many would-be first-time and move-up homebuyers, heading into the second half of the year and beyond,” says Gregory Klump, CREA’s chief economist, in the report.

Read: Does your client need help with home equity?

The national average price for homes sold in July was just under $481,500, up 1% year over year—the first annualized increase since January, says CREA.

Excluding sales in the greater Vancouver and Toronto areas, the national average home price was just under $383,000.

Also read:

Expect rising home prices in second half of 2018: Royal LePage

Could your client make this homebuying mistake?

Amid rising rates, most Canadians don’t plan to stress-test their mortgages

Advisor.ca staff

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.