Canadian existing home sales fell 3.2 percent in October from the previous month, the biggest drop in more than a year, as the prospect of lower-for-longer interest rates eases pressure on buyers.
Unit home sales fell to 39,235 during the month, down from 40,545 in September, the Canadian Real Estate Association said in a statement today on its website. Home prices fell 1.1 percent during the month to C$388,277 ($370,900).
The decline in sales was the first since February, ending a seven-month run that reflected a flurry of purchases as buyers rushed to beat expected mortgage-rate increases. That pressure diminished last month when Bank of Canada Governor Stephen Poloz dropped language about the need to raise rates, citing prolonged downward pressure on inflation.
“Now that interest rates appear to be going nowhere fast, sales activity in the near term may be held in check by homebuyers who are in less of a hurry to purchase,” said Gregory Klump, the real estate association’s chief economist.
Sales in Vancouver fell 10.1 percent in October from a month earlier, while sales in Toronto were down 4.9 percent.