Real Estate
Rate Hikes Hit Canada Housing With First Price Drop in Two Years
- Sales plunge 12.6% as borrowing costs begin to rise sharply
- Price declines are heaviest in smaller markets around Toronto
Rate increases have left Canada’s housing market looking increasingly vulnerable.
Photographer: Cole Burston/BloombergThis article is for subscribers only.
Canadian home prices fell for the first time in two years as a rapid rise in interest rates looks set to threaten one of the world’s hottest housing markets.
Benchmark home prices declined 0.6% in April from the month before, the first drop since April 2020, according to data released Monday from the Canadian Real Estate Association. The number of sales, meanwhile, plunged 12.6%.