By Hanna Mohammed

The growth of Canada’s residential real estate market is slowing.

Home sales declined 5.8 per cent across Canada from July to August, the largest single-month decline since June 2010, according to the Canadian Real Estate Association.

Weak consumer confidence, high unemployment and tight credit conditions continue to weigh heavily on housing demand and pricing, said the Bank of Nova Scotia in a report released Friday.

The GTA saw a 7.7 per cent decline in new listings.

Sales declines were also apparent in cities like Vancouver, Greater Montreal, Calgary, Edmonton and Ottawa.

Although the Canadian market is expected to slow further, European housing markets remain the weakest. Signs of modest improvement were shown in countries such as the United States, the U.K., Australia and China, the Scotiabank report said.

The report added that it will likely take a considerable amount of time for sustainable recovery to emerge in the global market. Stronger job and income growth will be required to generate the consumer purchasing power that is needed to support higher home sales.


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