Canadian home sales fell for a third consecutive month in June as the market cools from the record pace seen at the start of the year.
The number of homes that changed hands dropped 8.4% in June from May, a third straight monthly decline after hitting an all-time record in March, according to data released from the Canadian Real Estate Association (CREA).
Despite the slowdown, home sales last month saw the highest number of sales ever for the month of June, said CREA.
Canada became among the hottest housing markets in the world over the last year spurred by record-low mortgage rates and pandemic-induced demand for larger living spaces that drove property values higher.
But now, with vaccination rates rising, lockdowns easing and COVID-19 infections falling, some of the factors that propelled Canada’s pandemic housing boom are starting to ease, while the immigration that traditionally underpins the market remains muted.
The ratio of sales to new listings, or how fast demand is soaking up new supply, was 69.2% in June, the lowest reading since August 2020. Inventory on the market continued to climb to about 2.3 months worth of housing stock, up from the record low 1.8 months in March, according to CREA.
But even with the loosening of supply, the market remains historically tight. The long-term average for the national sales-to-new listings ratio is 54.6%, while historically five months worth of inventory has been the norm for the market, said CREA in a news release.