Home sales recorded over MLS systems fell by 3.9 per cent between August and September 2022. According to new data from CREA, month-over-month declines have been progressively smaller from May through August. 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 from August to September, the national number was pulled lower by the fact markets with declines included Greater Vancouver, Calgary, the Greater Toronto Area (GTA) and Montreal.
The actual (not seasonally adjusted) number of transactions in September 2022 came in 32.2 per cent below that same month last year and stood about 12% below the pre-pandemic 10-year average for that month.
Shaun Cathcart, CREA’s senior economist, says the market is undergoing rapid adjustment, with buyers and sellers trying to feel each other out.
“The Bank of Canada’s most recent rate hike in early September finally closed that door, so it was not a big surprise to see additional softness on the sales side,” Cathcart added. “Resale markets may remain on the quiet side for some time yet, with the flipside of that coin being even more pressure on rental markets.”
According to CREA’s data, the number of newly listed homes edged back a further 0.8 per cent month-over-month in September. This built on the 6 per cent and 4 per cent declines recorded in July and August, respectively, as some sellers appear content to stay on the sidelines.
It was an even split between markets where new supply was down in September and those where it increased. The most significant declines in the Greater Toronto Area offset the largest gains in B.C.’s Lower Mainland.
More of CREA’s September 2022 statistics can be found here.