🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Canadian home sales decline as high interest rates curb demand

EditorNikhilesh Pawar
Published 15/11/2023, 19:54

OTTAWA - Canada's housing market saw a notable decrease in existing home sales, dropping by 5.6% in October, as higher interest rates continue to cool down what was once a fervent sector during the pandemic. This latest decline echoes a previous dip in June 2022 when sales fell by 6.4%, underscoring the impact of the Bank of Canada's aggressive rate hikes on consumer spending.

Industry experts have observed a marked reduction in buyer activity, with Larry Cerqua noting a significant drop in potential homebuyers. John Pasalis pointed out record-low sales of detached homes in Toronto, highlighting how the country's largest city is not immune to the nationwide trend. The Bank of Canada's sustained campaign of raising borrowing costs has resulted in some of the highest interest rates seen in over two decades, leading to an economic slowdown with the housing market among the hardest hit sectors.

Despite the monthly decrease in home sales, national data indicates house prices have seen slight monthly decreases but annual increases, with notable gains over three- and five-year periods. However, new home listings also declined by 2.3%, contributing to a sales-to-new listings ratio that has fallen to a 10-year low of 49.5%. This figure is significantly below the long-term average of 55.1% and well beneath the peak of 67.9% witnessed in April, signaling a shift from a seller's to a more balanced or even buyer's market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.