While the number of new listings brought to market decreased slightly—adding more competition to the marketplace—active GTA buyers are still spoiled for choice, as overall listings are 7.7% above last year’s levels.
In terms of affordability, this translates to the average buyer needing to earn $1,660 less than they would have in May, and the average monthly mortgage payment reduced by $39 to $5,100.
Canadian cities where affordability worsened
Twelve of the 13 cities included in the study saw conditions worsen; with the exception of outlier Toronto, it’s clear demand is returning for real estate, particularly in housing markets where prices are already comparably lower; buyers have been less derailed by steep interest rates in these regions, keeping the boil under buyer demand and competition.
St. John’s: Another month at the top
St. John’s posted another strong month for home sales, with activity coming in 1.9% higher than last year. Home prices continue to heat up, with the benchmark price for the city rising by 12.3%, and 12.5% for single-family detached homes, specifically. That works out to a monthly difference of $9,500, to $387,800.
That means a buyer in St. John’s would now need to earn $2,460 more in June, and that their monthly mortgage payment—if they took out a new mortgage that month—would rise by $69 to $1,988.
Fredericton: Hot seller conditions push up prices
While the City of Fredericton had a relatively quiet month in terms of real estate activity—year-over-year home sales were down 4.7%, and new listings rose by 9.3%—overall supply in the region remains tight, which has prevented prices from cooling. The sales-to-new-listings ratio (SNLR) for the region is a steep 69.8%, well within sellers’ market territory.
As a result, the benchmark home price rose by $7,500 month over month to $342,200; that means a buyer there will now need to earn $2,000 more to afford a property, and the monthly mortgage payment increased by $56 to $1,754.
Ottawa: Sales are bouncing back in the nation’s capitol
The Ottawa housing market had a busy June, with home sales rising 10.6% on a year-over-year basis, now sitting 3.8% above the five-year average. That effectively pushed the benchmark price higher by $4,500 month over month, to $634,300. That breaks down to a required income increase of $2,940 for an Ottawa-area home buyer, and a monthly mortgage payment increase of $55 to $3,251.
