The Bank of Canada\u2019s latest back-to-back hikes have put a damper on the housing market\u2019s rebound this summer\u2014extremely hot weather and massive forest fires also possibly impacted activity in some regions. Home resales edged lower (-0.7% m\/m) nationwide for the first time in six months in July. <\/p>\n
This dip occurred despite a further solid increase in new listings (up 5.6% m\/m), which should be helping unlocking supply. New listings have now surged 24% since April\u2014fully reversing declines earlier this year.
\nMarket developments over the last two months have brought overall demand-supply conditions in Canada back into balance after tightening surprisingly fast this spring. <\/p>\n
Property values are still generally appreciating at a vigorous clip at this stage though the pace eased noticeably in July. The MLS Home Price Index rose 1.1% m\/m, down from an average 1.9% rate in the previous three months. We expect price gains to continue moderating in the months ahead as better balance between demand and supply reduce upward pricing pressure, and higher interest rates trim buyers\u2019 purchasing budgets. <\/p>\n