Canadian home sales fall in September as mortgage rates rise

Canadian home sales declined for the second consecutive month in September, falling 2.3 percent from August and dropping 7.7 percent from a year earlier, the Canadian Real Estate Association reported on Friday.

The association’s Home Price Index decreased 0.4 percent on a monthly basis and stood 3.4 percent below its level from a year ago. New property listings also fell by 1.8 percent month-over-month, while the seasonally adjusted sales-to-new listings ratio slipped to 48.8 percent, moving further below the long-term average of 54.7 percent.

Shaun Cathcart, the association’s senior economist, attributed the slowdown to recent increases in fixed mortgage rates and market expectations for a Bank of Canada rate hike. While the central bank is not expected to raise rates at its October 28 announcement, money markets are pricing in a 25 basis point increase in December.

Read the full story at wincountry.com.