Sean Kilpatrick The canadian Press
A house under construction in a new development in the vicinity of Ottawa
Housing sales continued to rebound in June after having plunged earlier this year because of the pandemic, said Wednesday the canadian real estate Association (CREA).
Sales in June increased by 63% compared to the month of may, while the number of properties newly listed for sale has increased 49.5 per cent from may to June, said the ICA.
Compared to a year ago, sales for the month of June increased 15.2 %.
The national average price of actual homes sold in June was approximately 539 000 $, an increase of 6.5 % compared to the same month last year.
The real estate sector has largely stopped at the beginning of this year, businesses, non-essential have closed their doors to slow the spread of the pandemic COVID-19. The ICA has indicated that the sales increase had reduced to “normal levels” for June, adding that they were up 150% compared to their level in April.
But, while it can reach ” normal levels “, the global market is “obviously not back to normal yet,” pointed out Shaun Cathcart, chief economist of CREA. “The market has recovered much more quickly than many would have thought, but that will happen later this year remains unknown,” said Mr. Cathcart in a news release. “That said, the follow-up to high frequency suggests that the results of July will be even better. “
Well that figures, at a glance, seem to indicate that there was “nothing unusual in the economy,” said the chief economist of the Bank of Montreal, Douglas Porter, the housing market must now try to maintain its momentum.
In the future, the market will have to balance the slowdown in levels of immigration, low interest rates and the housing shortage, said Mr. Porter, which is expected to create a “tension” with ” the lasting scars of closures “.
“Home sales, prices and housing starts have effectively regained all the ground lost during the shutdown,” wrote Mr. Porter in a note to clients. “However, it would be fair to say that a part of this force that is oversized is just made up of pent-up demand for the lost sales of the season’s key spring. “