Home sales in Canada fell in July for a fifth consecutive month as rising interest rates dampen
the market, according to the Canadian Real Estate Association (CREA).
July’s home sales were down 29.3% from a year earlier, and declined 5.3% from June, said
CREA.
Sales during July fell in three-quarters (75%) of markets across Canada, with Toronto,
Vancouver, Calgary, and Edmonton posting the biggest declines.
Home prices also continue to fall across the country, with the average price dropping 5%
compared to July 2021 to $629,971, according to CREA.
The slump in the housing market comes after the Bank of Canada raised its benchmark interest
rate to cool off red hot inflation. The central bank's key interest rate currently stands at 2.50%,
its highest level since 2008.
The Bank of Canada shocked markets by hiking it trendsetting overnight interest rate by a full
percentage point in July, with another rate increase expected when the central bank next meets
in September.
