Canadian August existing home sales slipped 0.7% on the month, breaking a five-month streak of gains as rising bond yields continued to weigh on buyer demand, according to TD Economics in a note Tuesday after the release of Canadian Real Estate Association (CREA) data.
Renewed trade-related uncertainty with the United States may have also prompted some prospective buyers to hold back, wrote TD.
With bond yields rising further in recent weeks, the housing market could see another weak month in September, said the bank. Yields are expected to remain elevated in the months ahead, weighing on housing-market momentum and slowing the recovery heading into next year.
As a result, home price growth is expected to slow across the country in the near term, added the bank.