The Canadian Real Estate Association (CREA) says the countryB次元官网网址檚 housing market continued to slow in September B次元官网网址� a stark contrast from the flurried pace of sales the fall usually delivers.

The association said Friday that September sales were down 3.9 per cent compared with August, a slight increase in the current sales slowdown that began with the Bank of CanadaB次元官网网址檚 first interest rate hike in March.

Compared with a year ago, home sales in September were down 32.2 per cent and about 12 per cent below the pre-pandemic 10-year average for the month.

Sherry Cooper, chief economist at Dominion Lending Centres, considered the numbers to be a sign of a housing correction, but noted itB次元官网网址檚 been an B次元官网网址渦nusualB次元官网网址� correction because itB次元官网网址檚 B次元官网网址渙rderlyB次元官网网址� and B次元官网网址渘on-chaotic.B次元官网网址�

B次元官网网址淗ome sales have slowed, but so have new listings, so the price declines are more muted than we might have expected,B次元官网网址� she wrote in a note to investors.

B次元官网网址淲eB次元官网网址檝e seen little distressed selling, as most would-be sellers have lots of home equity and low mortgage rates B次元官网网址� not anxious to buy new properties immediately. Moreover, with rents surging, most potential downsizers arenB次元官网网址檛 keen to make that trade-off.B次元官网网址�

The national slowdown CREA reported comes almost two weeks after real estate boards in many major cities, including Toronto and Vancouver, reported drops in sales and far fewer new listings than they expected for what is usually one of the busiest times of year.

Instead of the frenzy, they found few bidding wars and many sellers discouraged from listing their properties because they feared they wouldnB次元官网网址檛 fetch as much money as their neighbours did at the start of the year, when the market was moving at a torrid pace.

Robert Kavcic, a senior economist with BMO Capital Markets, said the conditions are causing a B次元官网网址渟tandoff in the market.B次元官网网址�

B次元官网网址淏uyers canB次元官网网址檛 qualify for, or afford, early-year prices, and probably donB次元官网网址檛 want to catch falling knives anyway (how quickly the sentiment turned),B次元官网网址� he wrote in a note to investors.

B次元官网网址淏ut, sellers are able to hold out for better market conditions or, in the case of investors, put units on the rental market. In other words, the market is just not clearing right now B次元官网网址� hence the lack of transaction volumes.B次元官网网址�

He noted that while the market balance is soft, there is no forced selling or dumping of properties, and added that he still sees the countryB次元官网网址檚 new listings as B次元官网网址渧ery well-behavedB次元官网网址� because the number of newly listed homes was down 0.8 per cent on a month-over-month basis in September.

On a year-over-year basis, new listings were down 1.5 per cent.

B次元官网网址淟istings fell for the third straight month, indicating that a softening economy and higher interest rates have yet to force a meaningful increase in supply,B次元官网网址� said James Orlando, a director and senior economist with TD Economics, in a note to investors.

B次元官网网址淚f anything, soft price conditions are keeping potential sellers on the sidelines.B次元官网网址�

The actual national average home price was $640,479 in September, down 6.6 per cent compared with the same month last year.

CREA said excluding the Greater Vancouver and Greater Toronto Area, two of CanadaB次元官网网址檚 most active and expensive housing markets, cuts more than $117,000 from the national average price.

On a seasonally adjusted basis, the national average home price totalled $650,172, a 1.2 per cent drop from August.

With the Bank of Canada expected to hike its policy rate even more, Orlando expected additional price pressure and forecast a 22 per cent decline in average home prices between the start of 2022 and 2023.

Meanwhile, Kavcic said, B次元官网网址淲ith mortgage rates across the spectrum set to push above five per cent as the Bank of Canada tightens further, this downward price discovery is probably going to persist well into next year, and anyone holding out for better market conditions is going to need a stroke of luck.B次元官网网址�

B次元官网网址擳ara Deschamps, The Canadian Press