Canadian Home Sales Plummet as Inflation Risks and Interest Rate Fears Bite
Canada's housing market continues to struggle, with home sales plummeting 6.9% in August compared to the same month last year. The Canadian Real Estate Association (CREA) reports that nationwide sales totaled 37,504 in August, down nearly 7% from August of this year. This decline is attributed to various economic headwinds, including rising inflation risks and the possibility of interest rate increases.
The national average sale price of a home in August was $668,219, marking a 0.6% increase from the previous year. However, new listings rose by 3.3% month-over-month, ending a streak of three consecutive monthly declines seen earlier in the summer. The Bank of Canada's decision to keep interest rates unchanged at 2.25% has also had an impact on housing sales.