HOME SALE PRICE MAY FALL 2.2%

A report by Re/max Canada forecasts the national average home sale price in Canada will fall 2.2 per cent in the final months of the year. The network of real estate brokers and agents said the moderation in the market for the September-to-december period comes amid rising interest rates, record inflation and broader global and economic uncertainties. Mortgage rates have risen sharply this year, raising the cost of borrowing for potential buyers. Re/max Canada president Christopher Alexander said many markets are seeing softer sales given recent rate hikes, providing some reprieve from the unprecedented demand and price increases across Canada through 2021 and in early 2022. However, Alexander said the current lull is only temporary and until housing supply increases, these boom and bust cycles will likely be a recurring event.