Real Estate

Higher Rates Start to Cool Canada’s Hot Housing Market

  • Transactions fall 5.4%, their biggest drop in nine months
  • Benchmark prices up 27% year-over-year on shortage of homes
Bank of Canada Raises Rates by a Half Point
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Canadian home sales posted their biggest decline since June as rising interest rates begin to cool the country’s red-hot real estate market.

National home salesBloomberg Terminal fell 5.4% in March from the previous month, with new listings also declining by about the same amount, according to a report Tuesday from the Canadian Real Estate Association. Despite the decline in activity, benchmark prices still rose 1% on the month and are up 27% from a year ago.