Home sales and prices continue to slide across the country as rising rates put more homebuyers on the sidelines.

The nationwide actual, non-seasonally adjusted average price stood at $665,850 in June, slipping nearly 2% from a year earlier and sliding 6% from May, according to data from the Canadian Real Estate Association.

The number of homes changing hands fell 5.6% month-over-month in June and fell approximately 24% from the June record set in 2021. The association noted that the declines were not as large as the drops seen in April and May.

“Sales activity continues to slow in the face of rising interest rates and uncertainty,” said Jill Oudil, chair of CREA, in a press release accompanying the data. “The cost of borrowing has overtaken supply as the dominant factor affecting housing markets at the moment, but the supply issue has not gone away. While some people may choose to wait on the sidelines as the dust settles in the wake of recent rate hikes, others will still engage in the market in these challenging times.”

The Bank of Canada’s aggressive rate hike cycle has been weighing on housing markets across the country. Most recently, the central bank rose its policy rate by a full percentage point on July 13 in a surprise move. Banks were quick to follow, raising their own prime rates.

Home Prices, Sales Slide in June as Rising Rates Put More Buyers on Sidelines by Stephanie Hughes | Financial Post | MSN