Canada’s red-hot housing market sees a 6 percent price decrease in April

Canada's Housing prices decrease. Credit: Twitter handle of CREA

Ottawa/CMEDIA: Higher interest rates reportedly caused Canadian red-hot real estate to see a 6 percent price decrease in April to $746,000.

With the decrease of home sales by 12 percent nationally in April, the biggest drops were seen in big cities like Toronto, the Canadian Real Estate Association said Monday.

“Following a record-breaking couple of years, housing markets in many parts of Canada have cooled off pretty sharply over the last two months, in line with a jump in interest rates and buyer fatigue,” CREA chair Jill Oudil said in a statement.

February this year witnessed peak prices at a record high of more than $816,000 with declining average home prices for two months in a row.

The average price stood at $796,000 in March before falling another six percent in April, which is typically a strong month for the housing market.

Although prices have decreased from their recent peak, they remain up by about seven per cent from where they were a year ago.