September Home Sales Continue To Soften

National home sales were down 3.9 per cent between August and September, with actual (not seasonally adjusted) monthly activity at 32.2 per cent below September 2021, says the Canadian Real Estate Association (CREA). From May through August, month-over-month declines have been progressively smaller. The September result marked a slight increase in the current sales slowdown that began with the Bank of Canada's first rate hike back in March. While about 60 per cent of all local markets saw sales fall, the national number was pulled lower by the fact markets with declines included Greater Vancouver, BC; Calgary, AB; the Greater Toronto, ON, Area (GTA); and Montreal, QC. “September was another month of lower sales activity, although, with many sellers also opting to play the waiting game, the market remains on the tighter side of balanced market territory,” says Jill Oudil, chair of CREA. “It makes for an interesting dynamic, one that doesn't really have many historical precedents. The market has changed so much in the last year, and the adjustment to higher borrowing costs is still underway.” CREA adds that the country is still in the middle of a period of rapid adjustment, with buyers and sellers trying to feel each other out while a lot of people have had to rethink their home search plans. As such, resale markets may remain on the quiet side for some time yet.