While home sales across the country dropped again in June, the Canadian Real Estate Association points out the decreases are smaller than in previous months.

CREA says declines were larger in April and May but that activity in June still fell a bit below average levels.

”Activity continues to slow in the face of rising interest rates and uncertainty,” said CREA chair Jill Oudil.

Ontario led declines as selling prices in the province’s suburban markets, which climbed the most during the pandemic, are now coming back down.

”Sales and prices are down disproportionately more in Ontario and B.C., which suffered severe affordability deteriorations during the pandemic,” says TD Bank economist Ksenia Bushmeneva.

”We expect that home prices and sales will move even lower amid further pressure from borrowing costs.”

CREA says the national home price fell 1.8% from June 2021, to $665,849, and on a seasonally adjusted basis, was down 4% from May.