Resales drop for seventh straight month

November 25, 2017

Resale home sales in Canada were down 4.3 per cent in October, extending the year-over-year decline to seven consecutive months, according to the Canadian Real Estate Association (CREA).
However, October sales inched up 0.9 per cent from September and CREA is forecasting higher monthly sales over the last two months of the year.
“National sales momentum is positive heading toward year-end,” said Gregory Klump, CREA's chief economist. “It remains to be seen whether that momentum can continue, once the recently announced stress test takes effect, beginning on New Year's Day. The stress test is designed to curtail growth in mortgage debt. If it works as intended, Canadian economic growth may slow by more than currently expected.”
The number of newly-listed resale homes eased by 0.8 per cent in October, following a jump of more than 5 per cent in September. The national result was influenced most by inventory declines in London-St. Thomas, Calgary and Greater Vancouver, according to CREA.
The decrease in national housing sales from year-ago levels was seen in slightly more than half of all local markets, led overwhelmingly by Toronto and nearby cities.