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- The Most Splendid Housing Bubbles in Canada: Prices Drop Further as Sales Slow and New Listings Jump Further
The Most Splendid Housing Bubbles in Canada: Prices Drop Further as Sales Slow and New Listings Jump Further
by Wolf Richter Wolf Street
The Home Price Benchmark Index is down 14% from peak in March 2022, Toronto down 15%, after wild and woolly sucker rally over the spring.
The Canada Home Price Benchmark Index for single family houses in fell for the third month in a row, in September by 1.3% from August, after having dropped by 1.1% and by 0.5% in the prior two months, to $815,300 (all prices in Canadian dollars).
The three months in a row of declines came after a wild and woolly sucker rally in the spring, fueled by the spring buying season and fake hopes about rate cuts. But the Bank of Canada instead went on to hike rates further to 5.0%, and at the last meeting added a further tightening bias, while inflation has begun to resurge across the board, topped off with Canada’s worst rent inflation since 1983.