Canada existing home sales for May 5.1% versus 12.1% expected

• Prior month 11.3%
• Canada existing home sales for May 5.1% versus 12.1% expected
• Not seasonally adjusted activity in May was up 1.4% from May 2022
• home price index rises 2.1% in May from April, down 8.6% year on year

Highlights from the CREA:

• The actual number of transactions in May was 1.4% higher than the same time last year, marking the first national year-over-year sales increase in almost two years.
• Larry Cerqua, Chair of CREA, noted that the recovery of national sales activity and national average home price is now clearly visible, but the future of this recovery, especially on the sales side, is dependent on supply which is currently low.
• According to Shaun Cathcart, CREA’s Senior Economist, the reluctance of existing owners to sell their properties, due to their ultra-low fixed rates secured during the COVID-19 Covid-19 Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Read this Term pandemic, could contribute to more acute price increases this year.
• The number of newly listed homes increased by 6.8% in May, however, the supply is still at historically low levels.
• The sales-to-new listings ratio in May was 67.9%, only slightly changed from 69% in April, with a long-term average of 55.1%.
• There were 3.1 months of inventory on a national basis at the end of May 2023, down from 3.3 months at the end of April.
• The Aggregate Composite MLS® Home Price Index (HPI) climbed 2.1% on a month-over-month basis in May 2023, after a similar gain in April. This increase in prices was observed in the majority of local markets.

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