Higher interest rates are pushing people to look closely at any plans they may have for purchasing a house. But not all parts of the country are handling it in the same way.
Because the first week of every month is when we get a fresh tally on the activity of home buyers in the previous month, we now have September’s figures.
It is a tale of a big country with dramatic regional differences. But there are also some similarities. So we’ll start there.
Home resale activity is down. That’s the national trend.
But here’s where the differences emerge. Sales in Saskatchewan were down last month — about seven per cent. In places like Toronto, the decline was more like 50 per cent.
Those who follow this stuff say interest rates, which have been rising to fight inflation, are the key factor at play here. In markets where home prices are high, the impact is more dramatic.
In Saskatchewan, which RBC says will likely see little price erosion because houses are quite affordable, interest rates are less critical because mortgages here tend to be significantly smaller.
