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.