“However, the process is unlikely to be smooth with persisting economic uncertainty, labour market softness and affordability issues poised to create waves. September’s setback serves as a reminder that the housing market recovery remains vulnerable to external shocks and shifts in sentiment.”
Home sales fell 1.7% in September compared to August, marking the first monthly decline since April.
While some regions such as Victoria, Regina, Saskatoon, Winnipeg, Toronto, Quebec City, and Sherbrooke saw increased activity, major centres including Vancouver, Calgary, Edmonton, Kitchener-Waterloo, London, Ottawa, Gatineau, Montreal, St. John, and Halifax posted declines.
Hogue noted that “mixed regional results highlight the fragile and uneven nature of the recovery underway.”
Gradual improvement but no surge in sight
The Bank of Canada’s anticipated policy easing cycle may offer some relief to affordability-constrained buyers, particularly first-time purchasers who have been sidelined by high borrowing costs.