The average sale price of a home in Canada fell 6% to $746,000 in April, down from the previous month but still higher than a year ago.
The Canadian Real Estate Association said Monday that home sales fell 12% in April nationwide, with the biggest declines seen in major cities like Toronto.
Prices peaked at an all-time high of over $816,000 in February of this year and average home prices have now fallen for two straight months. In March, the average price stood at $796,000, before falling another 6% in April, which is generally a strong month for the housing market.
“After two record years, housing markets in many parts of Canada have cooled quite sharply over the past two months, driven by rising interest rates and buyer fatigue,” said ICA President Jill Oudil said in a statement.
CREA says the average sale price can be misleading, as it’s easily skewed by expensive and numerous sales in big cities like Toronto and Vancouver. It highlights a different number called the house price index as a better indicator of the market because it adjusts for the volume and type of houses sold.
The HPI fell 0.6% in April, the first monthly decline in two years.