By Paul Vieira
OTTAWA-Canadian existing-home sales fell 4.1% in August from the previous month, reflecting activity the month after the Bank of Canada raised rates in July on worries that inflation wasn’t decelerating at a fast-enough pace.
On an unadjusted basis, transactions in August were 5.3% above sales from the same year-ago period, according to data from the Canadian Real Estate Association.
Following a Bank of Canada rate increase in July, to a 22-year high of 5.0%, “a dip in activity was expected,” said Shaun Cathcart, economist at the association. “The demand is obviously still there… For now, the slowdown on the buyer side should help keep a lid on prices.”
The data indicated benchmark house prices – calculated in a similar fashion to the S&P CoreLogic Case-Shiller National Home Price Index – edged up 0.4% in August from July, and are now 0.3% above year-ago levels. This marked the first 12-month increase in prices since September, 2022.
The sales-to-new listings gauge fell in August to 56.2% from 59% in the previous month, and is down from a peak of 67.4% in April. A higher reading implies a seller’s market, whereas something closer to 50% or below represents a buyer’s market.
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