MNI BRIEF: Canada Aug Home Prices Flat After Second Rate Cut
MNI (OTTAWA) - Canadian home prices were flat in August following following the central bank's second interest-rate cut in a row and buyers may be holding out in anticipation of further reductions, the national realtor group said Monday.
Sales through August have also been modest following the Bank of Canada's rate cuts in June and July, with the number of properties changing hands gaining 1.3% in August after a 0.7% decline in July. The Canadian Real Estate Association said its home price index was unchanged in August and down 3.9% from a year ago.
The "holding pattern" as CREA puts it is a big contrast from last year when one of the world's most overstretched housing markets took off again as investors sensed the BOC was pivoting away from rate hikes. Governor Tiff Macklem has said this year that while there are still upside pressures in housing and some services the broad-based easing of inflation means more cuts can be justified. (See: MNI INTERVIEW: BOC Has Scope To Cut To Neutral- BDC's Cleroux)