Latest news with #ShaunCathcart
Global News
a day ago
- Business
- Global News
Housing market ‘rebounded' in July, CREA says, but prices could soon spike
The Canadian housing market warmed up in July, and not just from the weather. 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 from the Canadian Real Estate Association (CREA). 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. At least one economist believes the situation is heading more towards a seller's market, and prices could soon spike — potentially locking many would-be homebuyers out of options. Story continues below advertisement 'It looks like the 'rebound' is underway and it'll be interesting to see what happens now that supply has also turned a corner and is falling again. So markets are tightening up,' senior economist Shaun Cathcart at the CREA says in an interview with Global News. 'Home 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.' 3:08 Saskatoon experiencing strong housing market this summer Why the slow start to the housing rebound? Interest rates had long dominated conversations around the housing market in Canada, after borrowing costs were increased gradually by the Bank of Canada starting in 2022 to combat spiking inflation — including in the form of a red-hot housing market. Story continues below advertisement After rates started coming down to a more 'neutral 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. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Interest rates aren't expected to do much of anything (this year). Even if we get the one (rate cut), there's not another one after that. At this point, we're sort of where we are. The Bank of Canada is rated 'neutral,'' Cathcart says. With rates hitting that 'neutral' 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's plans. Shortly after stepping into the Oval Office, United States President Donald Trump began imposing tariffs 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. 'If you go back to January 20, the afternoon when President Trump came from his inauguration, sat down in the Oval Office and said, 'I'm putting 25 per cent blanket tariffs on Canada,' I heard some early estimates of a million job losses. It would have been an absolute disaster,' Cathcart says. 'In the end, it hasn't been that bad. Even though it's 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.' Story continues below advertisement How might things change in the fall? The CREA's 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. 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. 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. 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. Story continues below advertisement 'When you look at the fall market, I think it'll be balanced, but also a healthy market for buyers coming in. It's next year that we really have to look into, 'Will it turn into a seller's market?' where the market really picks up, and it gets really hot, and where people have to start being competitive in terms of purchasing?' area vice-president Kingsley Ma at Remax Canada says. 'We're 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.' Prime Minister Mark Carney has been working on the Build Canada Homes plan, which aims to build nearly half a million new homes annually for 10 years. 'Build Canada Homes is probably the biggest, most ambitious sort of homebuilding ever in Canada,' Cathcart says. 'I think the main thing around supply for the government to consider and governments and for policymakers is, let's make sure we get this right.' 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 from committing to new home construction projects is the costs. Story continues below advertisement 'It definitely seems to me like the property types that make the most sense just don't make the most money,' Cathcart says. 'If you look at completions right now … 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's a role, I'm sure, for policy there.'
CBC
a day ago
- Business
- CBC
Canadian home sales role 6.6% in July compared to last year
The Canadian Real Estate Association (CREA) says home sales in July rose 6.6 per cent compared with a year ago, continuing an upward trend after the market had slowed in previous months. Home sales rose 3.8 per cent on a month-over-month basis from June, with transactions up a cumulative 11.2 per cent since March. "The long-anticipated post-inflation crisis pickup in housing seems to have finally arrived," said CREA senior economist Shaun Cathcart, adding the association plans to monitor how buyers react to the "burst of new supply that typically shows up in the first half of September." There were 202,500 properties listed for sale across Canada at the end of July, up 10.1 per cent from a year earlier and in line with the long-term average for that time of the year.
Toronto Sun
2 days ago
- Business
- Toronto Sun
National home sales rise as long-awaited boost 'seems to have finally arrived': CREA
Published Aug 15, 2025 • 1 minute read A "for sale" sign is pictured outside a home in this undated file photo. Photo by TYLER ANDERSON / POSTMEDIA The Canadian Real Estate Association says home sales in July rose 6.6 per cent compared with a year ago, continuing an upward trend after the market had slowed in previous months. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Home sales rose 3.8 per cent on a month-over-month basis from June, with transactions up a cumulative 11.2 per cent since March. CREA senior economist Shaun Cathcart says 'the long-anticipated post-inflation crisis pickup in housing seems to have finally arrived,' adding the association plans to monitor how buyers react to the 'burst of new supply that typically shows up in the first half of September.' The association says new listings were up 0.1 per cent month-over-month. There were 202,500 properties listed for sale across Canada at the end of July, up 10.1 per cent from a year earlier and in line with the long-term average for that time of the year. The actual national average sale price of a home sold in July was $672,784, up 0.6 per cent from a year ago. Sunshine Girls Sunshine Girls World Toronto & GTA Toronto & GTA
CTV News
2 days ago
- Business
- CTV News
National home sales rise as long-awaited boost ‘seems to have finally arrived': CREA
A real estate sign is shown in Vaughan, Ont., on Thursday Sept. 12, 2024. THE CANADIAN PRESS/Paige Taylor White The Canadian Real Estate Association says home sales in July rose 6.6 per cent compared with a year ago, continuing an upward trend after the market had slowed in previous months. Home sales rose 3.8 per cent on a month-over-month basis from June, with transactions up a cumulative 11.2 per cent since March. CREA senior economist Shaun Cathcart says 'the long-anticipated post-inflation crisis pickup in housing seems to have finally arrived,' adding the association plans to monitor how buyers react to the 'burst of new supply that typically shows up in the first half of September.' The association says new listings were up 0.1 per cent month-over-month. There were 202,500 properties listed for sale across Canada at the end of July, up 10.1 per cent from a year earlier and in line with the long-term average for that time of the year. The actual national average sale price of a home sold in July was $672,784, up 0.6 per cent from a year ago. This report by The Canadian Press was first published Aug. 15, 2025. Sammy Hudes, The Canadian Press
Yahoo
2 days ago
- Business
- Yahoo
National home sales rise as long-awaited boost 'seems to have finally arrived': CREA
The Canadian Real Estate Association says home sales in July rose 6.6 per cent compared with a year ago, continuing an upward trend after the market had slowed in previous months. Home sales rose 3.8 per cent on a month-over-month basis from June, with transactions up a cumulative 11.2 per cent since March. CREA senior economist Shaun Cathcart says "the long-anticipated post-inflation crisis pickup in housing seems to have finally arrived," adding the association plans to monitor how buyers react to the "burst of new supply that typically shows up in the first half of September.' The association says new listings were up 0.1 per cent month-over-month. There were 202,500 properties listed for sale across Canada at the end of July, up 10.1 per cent from a year earlier and in line with the long-term average for that time of the year. The actual national average sale price of a home sold in July was $672,784, up 0.6 per cent from a year ago. This report by The Canadian Press was first published Aug. 15, 2025. Sammy Hudes, The Canadian Press Sign in to access your portfolio
