No signs of slowdown in Canadian house prices, but sales fall

Data from the Canadian Real Estate Association:

• Canadian home sales fall 0.8% m/m in June
• Canadian home price index up 5.43% y/y
• Prices up 15.8% y/y in Vancouver and 12.3% in Toronto
• Full report

"Low interest rates are unquestionably helping boost consumer confidence and home sales activity this summer," said CREA President Pauline Aunger.

Housing prices in Canada are a ticking time bomb but no one knows how many ticks are left on the timer. They've risen further and faster than anyone predicted.

We'll find out if the Bank of Canada cuts rates further in less than an hour. I wrote an intense trading preview of the BOC decision late last night. Please take a look, it's one of my favourite central bank previews ever.