Home sales continue to slow.
National home sales fell 12.6% in April, but were still 23.8% higher than a year earlier.
In April 2022, home sales dropped in 80% of local markets, with the exception of Victoria, Montreal and Halifax-Dartmouth. The decline placed monthly activity at the lowest level since the summer of 2020.
Following a record-breaking couple of years, the housing market has cooled off over the last two months. Buyers should consider their options and sellers should return to traditional marketing strategies.
After 12 years of 'higher interest rates are just around the corner', the Bank of Canada has raised interest rates by a quarter point. This has already impacted fixed mortgage rates, and it won't take much more movement to affect variable rates.
The number of newly listed homes edged back by 2.2% in April, with sales falling by quite a bit more than new listings. The sales-to-new listings ratio eased back to 66.5%, its lowest level since June 2020, and there were 2.2 months of inventory.
The Aggregate Composite MLS® Home Price Index edged down 0.6% on a month-over-month basis in April 2022, although many Ontario markets were also up, while some others were flat.
The national average home price was $746,000 in April 2022, up 7.4% from the same month last year.
Source: (2022) Creastats.crea.ca. Available at: https://creastats.crea.ca/en-CA/ (Accessed: 23 June 2022).
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By: Sarah Colucci
Senior Mortgage Agent, Lic. M14000929