How interest rates will drive Canada's housing market in coming months

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'The only thing that matters right now are interest rates'

in September. Sales were down 12 per cent from August and 7.1 per cent year over year, according to Toronto Regional Real Estate Board data. There were also 16,258 new listings, a 32 per cent increase from August and 44.1 per cent higher than a year ago.

Prices are up in both Vancouver and Toronto from the same time last year, but weak sales combined with high inventory are starting to put downward pressure on prices. “These are not going to help the housing market in the short term,” Pasalis said. “The only thing that matters right now are interest rates, quite frankly, and the impact that’s having on the number of people who are buying homes, which is unbelievably low, and the number of people who are forced to sell because they’re over-leveraged.”Saretsky agreed: “In the near term, a 6.5 per cent mortgage rate is going to trump what’s happening on the immigration side.

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