Sales have slipped in July as uncertainty filters through the economy around high mortgage rates and jobs.

After two recent rate hikes from the Bank of Canada in June and July, the lending rate shot up to five percent from 0.25 percent since early 2022. Rate hikes will be felt acutely in real estate as stress test qualifying rates are now above seven percent.

And the real estate market is under even greater strain as all levels of government lag behind building enough housing to accommodate record levels of immigration.

Population growth is imperative for economic development; however, this growth will be unsustainable if people can’t find an affordable place to live. All three levels of government need to be on the same page to fix this issue.