New figures released by the Canadian Real Estate Association on Friday showed that the Canadian housing market continued to slow down last month, with the number of homes sold declining for now three consecutive months and record prices also falling.

CREA, which represents more than 100,000 real estate agents across Canada and compiles monthly statistics based on sales in the multiple listing service, stated that the trend of slowing sales that began with the rapid increase in interest rates has continued throughout the month, with sales volume decreasing each month.

The national price index of CREA fell by 0.3 percent during the month - marking its first decline since March - mainly due to the sharp slowdown in Ontario. In most other provinces, prices are still rising slowly, albeit at a much slower pace.

For his part, Larry Cerqua, president of CREA, said that buyers seem content to stick to a wait-and-see policy until there is more evidence that interest rates have indeed peaked. This, coupled with sellers who, generally, do not need to sell, means that the market is likely to remain on the slower side until next year.

Benjamin Reitzes, an economist at the Bank of Montreal, agrees with the assessment that the housing market is on a bumpy road as long as interest rates remain at their current level.

The current level of interest rates and prices do not mix well. He stated that one of the two needs to come down, and it does not appear that the Bank of Canada is preparing to cut interest rates anytime soon. Housing may face a harsh winter, although location is very important as usual, with some provinces likely to suffer more than others.

Across the country, the average selling price of homes sold last month was $655,507. This represents an increase of 2.5 percent from this time last year, but CREA says that the average figure can be misleading as it can be easily skewed by what is happening in the large and expensive markets of Toronto and Vancouver.

In the same regard, Yqvasil Staykov, a real estate agent in Toronto, said that the main theme of the housing market right now is the significant disconnect between sellers who are stubbornly trying to get the high prices they have pinned their hopes on, and buyers who are looking for a deal.

Staykov also added that buyer fatigue has begun to settle in, but not in the usual way, as buyers stop trying after their disappointment from losing in multiple bidding wars. Instead, they have grown weary because sellers refuse to accept that the market has slowed.

He said, "I’m stepping back from left, right, and center on three listings right now, and I’m also stepping back from a range of listings myself."