Recently, the unexpected strong pace of home sales the last few months may be 'losing steam' and has largely just returned sales levels to where they were before last year’s dramatic downturn.
"Sales had slumped so badly by last fall that transactions in September of 2012 dropped to the lowest levels seen in a decade," noted CREA economist Greg Klump. "That’s making this year’s sales look even better by comparison."
"Home sales are getting pulled forward at the expense of later this year and next, as potential homebuyers jump into the market before mortgage rates rise any further. Accordingly, we expect home sales to flop in the not-so-distant future, which will once again apply downward pressure on house prices," says David Madani, Capital Economics economist.