Average house price inches down from last year, even as sales bounce back from record April low

Residence gross sales bounced again by 57 per cent from their worst April in additional than 30 years final month, however the common worth of a house offered in Should inched decrease in comparison with final 12 months.

The Canadian Actual Property Affiliation, which represents 130,000 realtors throughout Canada and tabulates numbers based mostly on gross sales on their A number of Listings Service, says dwelling gross sales had been 56.9 per cent increased in Might than they had been in April.

April and Might are sometimes a really busy month for dwelling gross sales, as hotter climate prompts patrons to start out procuring after their winter hibernation. However COVID-19 has thrown the same old seasonal patterns of actual property out the window, as widespread lockdowns and bodily distancing necessities slowed most showings to a crawl.

This April was the worst such month in almost 40 years for dwelling gross sales, CREA reported final month. Exercise picked up somewhat in Might, however the gross sales stage remains to be simply two-thirds what it was earlier than the pandemic struck.

‘Combined bag’

Certainly, gross sales are nonetheless virtually 40 per cent under what they had been this time final 12 months. So regardless of the rebound, it was nonetheless the worst Might for dwelling gross sales in 30 years, CREA mentioned.

“Might’s housing numbers are definitely a blended bag of outcomes,” CREA’s chief economist Shaun Cathcart mentioned. “Gross sales and new listings are each manner up month-over-month however nonetheless manner down in comparison with 12 months in the past.”

“The large image is issues are transferring in the best path however nonetheless have an extended solution to go.”

Whereas dwelling gross sales have fallen off a cliff throughout COVID-19, costs are holding comparatively regular thus far. The common worth of a house offered in April was $488,000. In Might, it was $494,500 — a slight improve from April however 2.6 per cent decrease than a 12 months earlier.

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