Home sales across Canada shrank on a month-over-month basis in August by 5.8%, the largest decline since June 2010, according to TD Economics.
Sales contracted in five of the past six months, according to a TD Economics report released Monday.
The report is the first analysis since the rules on mortgages were tightened.
"These new regulations became effective on July 9, 2012," the report states. "The weakness in both the price and sales series in August was largely expected and the regulatory-induced slowdown should persist over the next six to eight months.
"The Canadian housing market has indeed ratcheted down its growth pace. In fact, in most local markets, it has reversed course with price and sales contractions becoming more the norm."
Despite a general contraction nationwide of home sales, the decline does not appear to be easing affordability for Vancouverites.
"In spite of the marked contractions seen, the average existing home price remains about seven to eight times larger than the average household income," the report states. "This suggests that many local Vancouver residents are still being priced out of the market."
