MNI BRIEF: Canada Realtors Warn Of Slump Unseen In Decades

Canada's main realtor group warned of a slump unseen in decades if homeowners already squeezed by expensive mortgages are forced to sell as the economy is weakened by the U.S. trade war, contrasting with central bank officials who last week said risks in consumer finances had faded.

“Given the increasing potential for a rough economic patch ahead, the risk going forward will be if an average number of people trying to sell their homes turns into a large number of people who have to sell their homes, and that’s something we have not seen in decades,” Canadian Real Estate Association economist Shaun Cathcart said in a monthly sales report. 

Home resales fell 9.8% in April from a year earlier and the average sales price is down by 3.9%. Sales have fallen well below the 10-year average since late last year when the U.S. began threatening tariffs and economic domination of Canada. (See: MNI: Canada Will Struggle To Wean Off U.S. Trade Dependence)