Housing market slowdown continues with sales and average prices well down from last year

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New numbers from the Canadian Real Estate Association verify what patrons, sellers and homeowners have identified for some time: the housing market is in a funk.

The group that represents greater than 155,000 Realtors throughout the nation stated in a launch Friday that sales for September have been down by greater than 30 per cent in comparison with the identical interval a year in the past.

Prices are down on an annual foundation, too, with the average promoting worth of a house listed on the MLS system going for $640,479. That’s down by 6.6 per cent in comparison with a year in the past, and down by greater than 21 per cent from the all-time excessive of $816,720 reached in February.

That was earlier than the Bank of Canada started its aggressive marketing campaign of charge hikes to rein in runaway inflation. The central financial institution has moved its benchmark lending charge up by greater than three share factors up to now six months, pushing charges on variable charge loans above 5 and even six per cent.

That’s poured chilly water on the as soon as red-hot housing market.

“The vital factor to recollect is we’re nonetheless in the course of a interval of speedy adjustment, with patrons and sellers making an attempt to really feel one another out whereas lots of people have needed to take their house search plans again to the drafting board,” CREA’s chief economist Shaun Cathcart stated in a launch. 

“As such, resale markets might stay on the quiet aspect for a while but, with the flipside of that coin being much more strain on rental markets.”

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