The seemingly endless run-up in home prices seems to have reached a peak, at least for now.
May home sales data from some of the country’s real estate boards showed sales and prices still growing in some regions, but down for their second consecutive month in others following the peak in March.
The following is a summary of activity in May for select cities. Keep in mind that year-over-year changes are now skewed due to the dip in activity during the height of the lockdown restrictions last spring.
Toronto (Toronto Regional Real Estate Board)
- Home sales: 11,951 (+15% above the 10-year average)
- Average sale price: $1,108,453 (+30% year-over-year)
Vancouver (Greater Vancouver Real Estate Board)
- Home sales: 4,268 (-13%)
- Average price (single-detached home): $1,800,600 (+22.8%)
- Average price (condo): $737,100 (+1.2%)
Montreal (The Quebec Professional Association of Real Estate Brokers)
- Home sales: 5,398 (-13.5% year-over-year)
- Average price (single-family home): $496,000 (+34%)
- Average price (condo): $365,000 (+30%)
“The return to lower, more sustainable levels of activity continued last month across major Canadian markets,” wrote Robert Hogue of RBC Economics. “Despite showing eye-catching increases from a year ago—entirely reflecting depressed comparison points in May 2020—our read of early reports from local real estate boards is home resales fell broadly from April to May.”
Mortgage Arrears Remain at Historic Lows
With the mortgage payment deferral program now in the rear-view mirror, the percentage of mortgage arrears has remained at historical norms.
Only 0.22% of mortgages from the chartered banks are currently in arrears, according to the latest (March 2021) data from the Canadian Bankers Association.
The national arrears rate hasn’t been lower than that since June 1990, and is well below the peak of 0.65% seen in January 1997.
The rate is lowest in Ontario (0.09%) and highest in Saskatchewan at 0.76%.