Canada's housing market may have peaked this year, as Vancouver and Calgary sales were down 45 and 42 per cent, respectively, compared to last July.
Mortgage rates are at a record low and there are many homes available for sale yet new buyers are still not entering the market.
"We expected the market to soften because we've seen such a flood of listings," said Laura Parsons, a Calgary-based manager at Bank of Montreal who specializes in mortgages, to The Globe and Mail. "You can look at this as a bad thing, but affordability has improved for many buyers and rates are still very low."
Even still, it is likely many felt pressured to buy earlier this year to secure a cheap mortgage, and avoid the harmonized sales tax that came into effect July 1 in Ontario and British Columbia.