(Toronto) The average national selling price of homes in Canada will drop 2.2 per cent in the final months of the year, real estate firm Re/Max Canada predicts in a new report.
Posted at 11:06 a.m.
This market moderation for the September-December period comes amid rising interest rates, record inflation and broader global and economic uncertainties, the network of real estate brokers and agents said in its statement. document.
Mortgage rates have risen sharply this year, driving up the cost of borrowing for potential buyers.
Re/Max Canada President Christopher Alexander said many markets are seeing declining sales due to recent interest rate hikes, providing respite from unprecedented demand and unsustainable price increases in the Canada through 2021 and early 2022.
However, Alexander believes the current market lull is only temporary and until housing supply increases, these boom and bust cycles are likely to recur.
The Canadian Real Estate Association (CREA) also lowered its sales and home forecasts and price growth expectations for the current year earlier in September.