Canada Home Sales Drop Amid Rising Economic Uncertainty
Canadian home sales fell in August as economic uncertainty and rising mortgage rates weighed on activity, according to data from the Canadian Real Estate Association.
The number of homes sold dropped by 0.7% month-over-month, while annual sales declined by 6.9% without seasonal adjustment.
The industry group's Home Price Index remained unchanged for the month but fell 3% year-over-year.
Newly listed properties rebounded 3.3% after three straight monthly declines, but the sales-to-new listings ratio slipped to 49.1% from 51.1%, moving further below the long-term average of 54.7%.
According to Shaun Cathcart, CREA's senior economist, what has changed is 'the broader economic environment, with the Bank of Canada recently warning of rising inflation risks, along with doubts about the durability of recent economic growth.'