Higher interest rates are continuing to exert downward pressure on both home sales and prices, according to real estate boards in the country's largest markets.
The trend of falling home sales and a growing number of listings continued in September, which observers say should keep downward pressure on prices.
Real estate markets across the country continued to lose steam in August following the latest Bank of Canada rate hikes in June and July. Everywhere outside of Alberta and some pockets of Atlantic Canada, that is.
Housing markets in the country's largest markets continued to moderate in August, following the Bank of Canada's recent interest rate hikes over the summer.
Home sales and prices continued to ease in July following the two latest rate hikes from the Bank of Canada.
The Bank of Canada's June rate hike served as a splash of cool water to recent housing market strength as home sales moderated in June and priced edged down compared to May.
While home sales remain higher on an annual basis in most of Canada's major housing markets, activity—and prices— have largely cooled down compared to May.
Ongoing excess demand in the economy, including a recent rebound in existing home sales, contributed to the Bank of Canada's decision to hike interest rates earlier this month.
Average resale home prices continued to climb in May, marking the fourth consecutive monthly increase, the Canadian Real Estate Association reported today.
Despite affordability challenges, rising housing demand has pushed Canada's national average home price up to $716,000, in April.