New mortgage rules cooling home sales across the country, report suggests

OTTAWA – The Conference Board says new tighter mortgage rules are putting the brakes on home sales and listings across Canada.

The think-tank says its research shows sales fell in August from the month earlier in 21 of the 28 metropolitan areas it tracks, with new listings easing in 17 centres.

The housing market was slowing in some cities before the July 9 start date of the tighter mortgage rules, which had the effect of raising monthly payments on mortgages.

But since July, the cooling appears to have become widespread.

The Conference Board notes that slower sales and fewer listings have not directly translated in lower prices in all markets, although average prices were down in nine of the 28 municipalities.

Last week, the Canadian Real Estate Association reported that sales of existing homes fell 5.8 per cent in August from July, and were down 8.9 per cent from August 2011.