After several months of small pullbacks, the number of houses sold in some of Canada’s largest markets plummeted in July. There are plenty of factors at work – most notably the rush of buyers earlier in the year who wanted to avoid new taxes in B.C. and Ontario –

As prices moved higher in 2009 and 2010, many Canadians rushed to get their houses on the market. The number of houses listed has peaked just as demand cools. At the end of June, CREA said it would take 6.9 months to sell all the listed homes in Canada given the current rate of sales – the highest level since March 2009. Sellers face a choice. Take their listings down, or settle for less.