Canada's existing home sales fell 0.7% YoY in August, the Canadian Real Estate
Association said, reversing modest gains in the prior four months and leaving
activity roughly unchanged since May. CREA senior economist Shaun Cathcart said
the macro backdrop has shifted after the Bank of Canada warned of higher
inflation risks and questioned the durability of recent growth. July GDP was
flat and consumer inflation has sat at the upper bound of the BoC's 1–3% target
range for two months. Cathcart warned rising bond yields have pushed fixed
mortgage rates higher, while markets are pricing BoC hikes this year that would
lift variable mortgage costs—developments that should dampen prospects for
further housing-market growth into 2027.
