Sales miss estimates but hit a record

Sales miss estimates but hit a record

Canadian August existing home sales rose 6.2% compared to 8.0% but that was still enough to send the measure to an all-time record.

Sales rose 33.5% y/y in August as the market plays catch-up after the spring closure. That was coupled with a 1.7% m/m in price and a 9.4% y/y increase.

Total sales were the sixth highest for any month and the highest ever in August. Even with the pandemic, total sales are up 0.8% through the first 8 months of the year.

"Many markets dealing with inventory shortages have been seeing fierce competition among buyers this summer; although, that was something that had been anticipated for 2020 prior to COVID-19. It really does seem that the spring market shifted into the summer," said Costa Poulopoulos, Chair of CREA in the release.

Economists at CREA did note signs of moderating in September along with a 10.6% rise in listings in August.

Still, it's an undoubtedly tight market with just 2.6 months of inventory nationally, the lowest reading on record.