Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Canada's housing market showed signs of cooling as home sales slipped slightly during November, ending the strong mid-year recovery seen earlier. Data released by the Canadian Real Estate Association showed a modest monthly drop in transactions, alongside a decline in prices and fewer new listings. While activity remained well above the lows recorded in spring, sales have largely plateaued over the past few months. The slowdown comes as borrowing costs remain elevated, with the central bank maintaining its key policy rate, prompting buyers and sellers to adopt a more cautious stance.
Home sales across Canada declined by 0.6% in November compared to the previous month, while home prices also moved lower, according to figures released by the Canadian Real Estate Association. The drop marked a pause in the rebound that began after weaker market conditions earlier in the year. Advertisement
Despite the monthly fall, overall sales levels were still significantly higher than those seen in April, though activity has remained broadly flat since midsummer. On an annual basis, sales were down 10.7% without seasonal adjustment, reflecting the impact of higher interest rates on affordability and buyer demand.
Prices showed a similar trend. The industry body's Home Price Index edged down 0.4% from October and was lower by 3.7% compared to the same period last year. At the same time, newly listed properties declined by 1.6% month-on-month, indicating that sellers are also holding back amid uncertain market conditions.
The association's senior economist noted that the housing market's mid-year surge in demand had shifted into a holding pattern, with neither buyers nor sellers showing strong urgency. This follows a period earlier in the year when improved borrowing expectations had briefly lifted market sentiment.
Adding to the cautious tone, the Bank of Canada maintained its policy interest rate at 2.25% in the past week, signalling a wait-and-watch approach as it assesses inflation trends and economic growth. Higher financing costs continue to weigh on purchasing power, particularly for first-time buyers.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
