Canadian Home Sales At Five-Year Low In May

• National home sales edged down 0.1% from April to May
• Actual (not seasonally adjusted) activity was down 16.2% from May 2017
• The number of newly listed homes rose 5.1% from April to May
• The MLS Home Price Index (HPI) in May was up 1% year-over-year (y-o-y)
• The national average sale price declined by 6.4% y-o-y in May

"This year's new stress-test became even more restrictive in May, since the interest rate used to qualify mortgage applications rose early in the month," said, Gregory Klump, CREA's Chief Economist. "Movements in the stress test interest rate are beyond the control of policy makers. Further increases in the rate could weigh on home sales activity at a time when Canadian economic growth is facing headwinds from U.S. trade policy frictions."

A national sales-to-new listings ratio of between 40% and 60% is generally consistent with a balanced national housing market, with readings below and above this range indicating buyers' and sellers' markets respectively; however, the range consistent with balanced market conditions varies among local markets. 

If you have any questions, or concerns, about today's market, contact me today!
 
Mike Mossuto
 Sales Representative
 Keller Williams Complete Realty

(All information taken from CREA National Statistics)