A report issued by Re / Max Canada predicts that the average home sale price in Canada will decrease by 2.2 percent in the last months of the year. The network of brokers and real estate agents says that the market moderation from September to December comes amid rising interest rates, record inflation, and broader global and economic uncertainty.

Christopher Alexander, President of Re / Max Canada, also says that many markets are seeing lower sales due to recently higher interest rates, providing some relief from unprecedented demand and unsustainable price increases across Canada until 2021 and early 2022. However, Alexander says the current market calm is only temporary, and until housing supply increases, these boom and bust cycles are likely to become a recurring event.

The Re / Max report came following a move by the Canadian Real Estate Association earlier this month to lower its home sales forecasts for this year and reduce its price growth expectations.