Canada: Do You Remember, We Were in a Housing Correction in September?

Existing homes sales fell 3.9% in September on a seasonally-adjusted basis – the seventh consecutive monthly decline. Sales contracted in around 60% of Canadian markets in September. Meanwhile, the average sale price of an existing home fell by 1.2% in September to $650K on a seasonally-adjusted basis. What does this mean for the Bank of Canada? It means everything is going to plan, so don’t expect a change in direction anytime soon. In fact, while we continue to be of the view that the Bank will most likely hike the overnight by 50 bps at its next meeting, another 25 bps hike in December is looking increasingly likely.