{"id":71357,"date":"2025-08-15T23:24:12","date_gmt":"2025-08-15T23:24:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/71357\/"},"modified":"2025-08-15T23:24:12","modified_gmt":"2025-08-15T23:24:12","slug":"housing-market-rebounded-in-july-crea-says-but-prices-could-soon-spike-national","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/71357\/","title":{"rendered":"Housing market \u2018rebounded\u2019 in July, CREA says, but prices could soon spike – National"},"content":{"rendered":"

The Canadian housing market<\/a> warmed up in July, and not just from the weather.<\/p>\n

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Total home sales across Canada increased 3.8 per cent compared with the previous month, and marked the fourth straight monthly increase, according to the latest data<\/a> from the Canadian Real Estate<\/a> Association (CREA).<\/p>\n

More listings are also expected to be added to the market by the fall and prices are rising at a slower pace than sales growth. Although this may seem like good news for buyers right now, industry experts believe it may not last long as demand is expected to catch up with available supply by next year.<\/p>\n

At least one economist believes the situation is heading more towards a seller\u2019s market, and prices could soon spike \u2014 potentially locking many would-be homebuyers out of options.<\/p>\n

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\u201cIt looks like the \u2018rebound\u2019 is underway and it\u2019ll be interesting to see what happens now that supply has also turned a corner and is falling again. So markets are tightening up,\u201d senior economist Shaun Cathcart at the CREA says in an interview with Global News.<\/p>\n

\u201cHome prices have been rising, but are still stable at the national level. I think we may see (price) gains creep in as early as this fall.\u201d<\/p>\n

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSaskatoon experiencing strong housing market this summer\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

\t\t\t\tWhy the slow start to the housing rebound?\n\t\t\t\t\t\t<\/p>\n

Interest rates had long dominated conversations around the housing market in Canada, after borrowing costs were increased gradually by the Bank of Canada<\/a> starting in 2022 to combat spiking inflation \u2014 including in the form of a red-hot housing market.<\/p>\n

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After rates started coming down to a more \u201cneutral level, meaning high enough to maintain price stability while still allowing for the economy to expand, it was expected that home sales would start to increase as more buyers could qualify for mortgages.<\/p>\n

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\u201cInterest rates aren\u2019t expected to do much of anything (this year). Even if we get the one (rate cut), there\u2019s not another one after that. At this point, we\u2019re sort of where we are. The Bank of Canada is rated \u2018neutral,’\u201d Cathcart says.<\/p>\n

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With rates hitting that \u201cneutral\u201d level, many would-be buyers would have started looking for a home sooner this year, but the trade war threw a wrench in some people\u2019s plans.<\/p>\n

Shortly after stepping into the Oval Office, United States President Donald Trump began imposing tariffs<\/a> on countries, including Canada. This meant many of those potential buyers may have held back on big purchase plans like a home for fear of how the economy may evolve.<\/p>\n

\u201cIf you go back to January 20, the afternoon when President Trump came from his inauguration, sat down in the Oval Office and said, \u2018I\u2019m putting 25 per cent blanket tariffs on Canada,\u2019 I heard some early estimates of a million job losses. It would have been an absolute disaster,\u201d Cathcart says.<\/p>\n

\u201cIn the end, it hasn\u2019t been that bad. Even though it\u2019s at 35 per cent now, things are exempt. So as long as that trade deal holds, this is more of a sector-specific problem. So, a lot of the initial worries I think have faded a little bit. That can obviously change, but not surprising to see that people are starting to get on with their lives again.\u201d<\/p>\n

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\t\t\t\tHow might things change in the fall?\n\t\t\t\t\t\t<\/p>\n

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The CREA\u2019s report shows the amount of new homes added to the Canadian housing market in July was virtually unchanged, with an increase of 0.1 per cent compared with June, but seasonal trends dictate that more homes will likely be added to the market by the fall.<\/p>\n

The home price index, which factors in seasonal adjustments, was virtually unchanged in July compared with June, and down 3.4 per cent compared with the same period in 2024.<\/p>\n

Although more listings are expected later this year, the long-term outlook for housing supply has been a critical issue that the federal government is taking action on.<\/p>\n

The supply and demand theme of the housing market means that the more demand there is for homes to buy, the higher the asking price ultimately will be. This would be the case unless there are more homes added to the housing market, which would help stabilize prices.<\/p>\n

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\u201cWhen you look at the fall market, I think it\u2019ll be balanced, but also a healthy market for buyers coming in. It\u2019s next year that we really have to look into, \u2018Will it turn into a seller\u2019s market?\u2019 where the market really picks up, and it gets really hot, and where people have to start being competitive in terms of purchasing?\u201d area vice-president Kingsley Ma at Remax Canada says.<\/p>\n

\u201cWe\u2019re looking at a balanced market from now until the end of the year and perhaps the first half of next year, when the demand has to catch up with the whole inventory.\u201d<\/p>\n

Prime Minister Mark Carney has been working on the Build Canada Homes plan<\/a>, which aims to build nearly half a million new homes annually for 10 years.<\/p>\n

\u201cBuild Canada Homes is probably the biggest, most ambitious sort of homebuilding ever in Canada,\u201d Cathcart says.<\/p>\n

\u201cI think the main thing around supply for the government to consider and governments and for policymakers is, let\u2019s make sure we get this right.\u201d<\/p>\n

Although the plan could provide needed supply to the Canadian housing market as demand continues to increase, it may be more of a long-term plan. One of the issues that may be hindering developers<\/a> from committing to new home construction projects is the costs.<\/p>\n

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\u201cIt definitely seems to me like the property types that make the most sense just don\u2019t make the most money,\u201d Cathcart says.<\/p>\n

\u201cIf you look at completions right now \u2026 70 per cent are small apartments. The single detached home is basically an endangered species at this point. The ones that are getting built are mansions. The missing middle is still missing, and there\u2019s a role, I\u2019m sure, for policy there.\u201d<\/p>\n

\n\t\t&copy 2025 Global News, a division of Corus Entertainment Inc.\t<\/p>\n","protected":false},"excerpt":{"rendered":"The Canadian housing market warmed up in July, and not just from the weather. Total home sales across…\n","protected":false},"author":2,"featured_media":71358,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,63,99,2065,6016,55966,7688,11152,171,1003],"class_list":{"0":"post-71357","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-canada","12":"tag-consumer","13":"tag-home-prices-canada","14":"tag-housing","15":"tag-housing-market","16":"tag-markets","17":"tag-real-estate"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/71357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=71357"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/71357\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/71358"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=71357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=71357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=71357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}