According to a new report from the Conference Board of Canada, the sales of existing homes fell from July to August in 21 of the 28 markets it surveys. Resale markets slowed in August as a result of tougher mortgage rules, says the Board.
The declines were 5 per cent or greater in 16 of the markets. In the report Robin Wiebe, an economist with the Conference Board of Canada, notes that “falling listings are another sign of weakness, because homeowners are less likely to list when the market is soft.” There were fewer new listings between July and August in 17 cities, and the number of listings was behind 2011’s volume in 17 markets.
“A declining sales-to-listings ratio in 21 markets is another indicator of cooling, but balanced conditions were still observed in 23 areas in August. Victoria, Vancouver, Québec City, and Gatineau flashed buyers’ signals last month,” explains Wiebe.
Despite the market conditions, average prices in August were only down in 9 of the 28 markets.