Recent rate hikes continue to slow housing activity in Canada’s largest cities

Following the Bank of Canada’s recent interest rate hikes over the summer, housing markets in the country's largest markets have continued to moderate. The strong spring housing rally has cooled, leading to more balanced conditions in most markets. In the Greater Toronto Area, sales are down 5.2% compared to last year, while prices are only marginally higher. Alberta’s biggest housing markets have seen more activity than other regions, likely buoyed by population gains and a strong labour market. However, rising inventory suggests a shift in market sentiment, which could lead to less sanguine prospects for home values going forward. Elevated interest