Canadian Home Sales Fall for a Second Month in October

(Bloomberg) -- Canadian home sales declined for a second month in October led by weakness in the country’s largest cities, a realtor group said.

The number of transactions fell by 1.6 percent from September, the Canadian Real Estate Association reported Thursday. Sales fell by 2.9 percent in Montreal and by 1.1 percent in Toronto.

Key Insights

• The figures are consistent with continued softness in the country’s resale markets as buyers cope with higher interest rates and tighter mortgage qualification rules, particularly in the pricey Toronto and Vancouver real estate sectors
• A benchmark index of prices in Canada declined for a fifth month, down 0.1 percent, and has fallen 1.4 percent over that time. Prices in Vancouver are down 3.8 percent since the summer and little changed in Toronto. Overall, prices are still up 2.3 percent from a year ago
• Housing markets also continue to sag in Alberta, a region that has borne the brunt of depressed oil prices. There are more signs of strength east of Toronto, with both Ottawa and Montreal posting solid price gains over the past six months

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• The average home price fell 1.5 percent from a year earlier
• Home sales declined 3.7 percent from a year ago, CREA said
• For more data: Canada Benchmark Home Prices Fell 0.13% M/m in Oct. (Table)

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