Canadian home sales slumped again in September — and benchmark price went down, too
Canada's housing market remained in the doldrums last month, new numbers from the Canadian Real Estate Association show Friday, as the volume of sales has fallen for three months in a row and benchmark prices slipped lower, too. The Canadian Real Estate Association (CREA) reported that sales have fallen for three months in a row and benchmark prices went down, too. The trend of slowing sales that started with the rapid escalation in interest rates continued during the month, with sales volume inching lower every month since June. The CREA's national price index slipped by 0.3 per cent during this month, mostly because of a sharp slowdown in Ontario. Benjamin Reitzes, an economist with Bank of Montreal, agrees with the assessment that the housing market is in for a bumpy ride as long as interest rates remain at their current level. More to come from the Bank of Canada, as location matters a lot, with some provinces likely to struggle more than others.
Publicerad : 2 år sedan förbi Pete Evans i Business Finance
Canada's housing market remained in the doldrums last month, new numbers from the Canadian Real Estate Association show Friday, as sales have fallen for three months in a row and benchmark prices slipped lower, too.
CREA, which represents more than 100,000 realtors across Canada and tabulates monthly statistics based on sales on its Multiple Listings Service, said the trend of slowing sales that started with the rapid escalation in interest rates continued during the month, with sales volume inching lower every month since June.
CREA's national price index slipped by 0.3 per cent during the month — its first decline since March — mostly because of a sharp slowdown in Ontario. In most other provinces, prices are still inching higher, albeit a lot more slowly.
Buyers "seem content to stick to the sidelines until there's more evidence that interest rates are indeed finally at the top," CREA president Larry Cerqua said. "This, combined with sellers who, by and large, do not need to sell, means the market will likely remain on the slower side until next year."
Benjamin Reitzes, an economist with Bank of Montreal, agrees with the assessment that the housing market is in for a bumpy ride as long as interest rates remain at their current level.
"The current level of interest rates and prices don't mix well. One of the two needs to come down, and it doesn't look like the Bank of Canada is poised to cut rates any time soon," he said. "Housing could be in for a rough winter, though as usual, location matters a lot, with some provinces likely to struggle more than others."
More to come.
Ämnen: Real Estate, Markets