Canadians have had the pleasure of comfortable home price appreciation over the past two decades, in recent months it has been the mere opposite. The Canadian Real Estate Association has released (3) straight months of drops in price for benchmark home values across the country.
Inflation in Canada is running wild, forcing the Bank of Canada to increase its interest rate policy from 2.5% to an additional (.25%) BPS rate hike. With financing becoming an issue across the country for home buyers, home sales have dropped significantly in the last few months.
This series of events is the worst drop in home values since Covid-19. After the amazing housing boom Canada saw during the months and years following the pandemic, experts were anticipating for the market to eventually cool off. As home prices continue to drop, look to see what the Canadian government chooses to do to combat inflation in the months to come.