Canadian real estate agents slash their sales outlook as gains slow
BNN Bloomberg
The industry group for Canada’s real estate brokers cut its forecast for home sales as tight inventory and the Bank of Canada’s recent rate hikes weigh on the housing market.
The Canadian Real Estate Association now estimates that sales in 2023 will be down 6.8 per cent from a year earlier, a more drastic decline than the 1.1 per cent decrease expected in an April forecast. Sales started to come under pressure in June with the number of transactions up just 1.5 per cent from May, smaller than the increases in April and May, according to seasonally adjusted data released Friday.
Homebuyers are contending with the prospects of even tighter economic conditions. The Bank of Canada raised its benchmark rate for a second straight meeting in July and left open the potential for more increases ahead.
Recent rallies in home transactions had already been losing steam and took a hit from the resumption of rate hikes, the real estate group said.
