The latest data from digital marketplace Wowa suggests a two-speed real estate scene across Canada right now.
Even with two recent interest cuts that took the benchmark to 4.5%, parts of the property market remain red-hot while others appear stuck on the cool side.
Wowa’s Housing Market Report released in June found national transactions totalled 37,401, which was down 6.4% compared with the corresponding period last year.
The MLS price benchmark stood at $733,300 for a so-called “typical home”.
The average sale price for all property types was $699,117, a fall of 4.1% on its figures 12 months ago.
We recommend to our clients not to pay too much attention to national averages, as they are only an indicator of market mood.
Instead, it is more profitable to discuss trends in your local area with experienced professionals. And our agents would be delighted to help you.
Why is this relevant? Canada is not one giant property market but made up of thousands of micro-markets, each with its own characteristics and real estate performance.
To illustrate the point, let’s look at the provinces. Alberta has recorded its fifth successive month of record-breaking price growth, hitting $514,200, according to the Wowa survey.
New Brunswick can tell a similar story, achieving a record price average of $338,740. Saskatchewan is another hot market with a benchmark price of $340,400.
Compare that with our second largest province, Ontario, where prices have fallen 3.3% in the past 12 months. Meanwhile, growth for British Columbia has been modest, up 1.1% to $985,200.
Wowa’s June survey also found the sales-to-new-listings ratio (SNLR) remained at 53% – a sweet spot for this type of measure.
Anything over 60% signals a seller’s market. Under 40%, and the buyer has the upper hand.