Canada’s housing market is cooling off with prices and sales falling led by steep declines in its two largest markets, new numbers show.

MLS (Multiple Listing Service) Home Price Index fell 1.9 per cent in June from May and is down nearly five per cent from the end of March, a report from RBC Economics found. Sales also fell month over month by 5.6 per cent, and nearly 24 per cent year over year.

Every major centre saw sales fall, including Calgary at 5.6 per cent year over year. Still, it remains among the strongest markets with its price index gaining 14 per cent year over year, while remaining steady in June from May.

Declines were steepest in large centres like Toronto where sales fell more than 41 per cent in June from the same month last year, and Vancouver saw sales decrease by more than 35 per cent.

https://www.msn.com/en-ca/money/topstories/housing-demand-falls-across-canada-led-by-vancouver-and-toronto/ar-AAZRHY5?cvid=17f1c656f72a49b9a2a47f5e3c9bd291&ct=t(Y_COPY_01)

To summarize, the effect of rising interest rates for mortgages is cooling the residential housing market. Generally, sales are taking longer which, in turn, increases the number of listings on the market.  More new listings are appearing while the number of sales are decreasing, this also results in a growing number of listings on the market. 

Buyers have more selection, more time to decide and more opportunity to present conditional offers.

Are prices falling? Perhaps some sellers are "panicking" and accepting less, however, I feel it's a bit early to make the judgement that prices are coming down.  Perhaps statistics will show average selling prices are declining but this may be because more lower priced homes are selling than higher priced homes resulting in average prices appearing to be less than before. 

Here's the latest report from the BC Real Estate Association (BCREA) economist. To view the video click here... Housing Market Update.

To see the charts, click here.

Prices of new condominium apartments in Canada's major urban centres are on the rise.