Yet again we’re seeing by and large irrefutable evidence that the way the demise of the Canadian Real Estate market from the Pandemic isn’t turning out that way at all, and that the real estate market in Canada continues to be in good health by and large. The CREA (Canadian Real Estate Association) just recently announced that more homes were sold across then country in July of 2020 than in any other month over the past 40 years. Yes, you read that correctly – 40 years – and that’s an awfully long time and covering some times when the ‘economic outlook’ of the country was a lot rosier than it is now.
This of course isn’t meant to say that Canada is not in some difficulty as far our immediate economic outlook is concerned, and the economic recovery from COVID19 is going to be a rocky one. What we can see in this though is that demand continues to outstrip supply with homes in Canada, and that there continues to be qualified buyers for all of these homes that are selling.
That’s good news for everyone, from the economy itself (real estate is a huge economic driver in certain parts of the country, and always will be) to every single realtor working in Canada. It’s not making the business any less competitive for real estate agents in Canada, however, and it’s for that reason that our online real estate lead generator here at Real Estate Leads has the value it does for realtors who are looking for the best and most effective ways to get a larger slice of the pie, as the expression goes.
But let’s get right back to having a more in depth look at the what and why of July being this record breaking month for home sales in Canada.
62,355 homes is a lot of homes, and that’s the number attached to the money sales figure record for July according to the CREA. Sales in July were up 30.5 per cent compared with the same month a year ago and up 26% from June, rebounding from lows earlier in the year when the market entered a real freeze on account of the COVID 19 pandemic.
The association said the sales came as the actual national average price for homes sold in July reached up to $571,500, another record and up 14.3% from the same month last year. The industry consensus on this is that this is in large part a natural bounce back response with activity that otherwise would have happened earlier in the year.
We should keep in mind that we were heading into the tightest spring market in almost 20 years before the pandemic began and everything went amok.
We can attribute a lot of this to a number of factors that are fairly common amongst all prospective new home buyers; a new-found importance of home, the lack of a daily commute for many, a desire for more outdoor and personal space, room for a home office, and so on and so forth. People want to put down roots like always, and while their priorities have shifted it still equates to homes being bought and sold the same way as always.