Canadian Home Sales Plummet Amid Economic Uncertainty
Canadian home sales declined in August due to rising economic uncertainty and increasing mortgage rates. According to data from the Canadian Real Estate Association, month-over-month sales fell by 0.7%, while annual sales dropped by 6.9% without seasonal adjustment.
The industry group's Home Price Index remained unchanged for the month but decreased by 3% year-over-year. New listings rebounded by 3.3% after three consecutive monthly declines, but the sales-to-new listings ratio slipped to 49.1% from 51.1% in July, moving further below the long-term average of 54.7%.
Shaun Cathcart, CREA's senior economist, attributed the decline in home sales to the broader economic environment. '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,' he said.