(Bloomberg) -- Canadian home sales surged to a record in July as homebuyers emerged from lockdowns.
Transactions for existing properties reached 62,355 in the month, up 26% from a month earlier, the Canadian Real Estate Association reported. Benchmark prices were 2.3% higher on the month, as pent-up demand for homes collided with extremely low inventory levels.
“A big part of what we're seeing right now is the snap back in activity that would have otherwise happened earlier this year,” Shaun Cathcart, CREA senior economist, said in a statement.
Canada's economy is emerging the steepest downturn since the Great Depression, fueling a renewed housing boom. Housing starts hit a two-year high last month, while the latest confidence readings show optimism about prices is rebounding.
In Toronto, the country's largest market, sales of existing properties jumped 50% in July compared to June, and were up 29% with the same month a year ago, CREA reported. Vancouver sales increased 44% on the month and 24% from July 2019. Average prices in Toronto were 5.5% higher on the month, and up 1.5% in Vancouver.
There were just 2.8 months of inventory nationwide, the lowest level on record, CREA said.
Average prices were 9.4% higher nationwide on the month.
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