House Price Growth Eased in March. Is a Cool-down Imminent?

Home sales in Canada decreased in March, while the pace of price growth slowed, indicating a potential slowdown as interest rates rise. The Canadian Real Estate Association (CREA) revealed that home sales fell 16.3% YoY to 55,000 units, with the average home price at $796,068, down 1.5% MoM. The MLS Home Price Index showed a month-over-month gain of 1%, compared to 3.5% in February, and up 27.1% YoY, down from the 29.2% recorded the previous month. While the market remains historically active, the CREA chair cautioned it was necessary to wait and see if the slowdown is the start of a cooling-off period.