Canadian home resales fell last month at the fastest pace since January, led by declines in Vancouver and Toronto.
Sales fell 2.1 percent to 41,879 units from August, the Canadian Real Estate Association said Thursday from Ottawa. Vancouver declined by 3.8 percent to 3,427 and in Toronto they fell 3.5 percent to 8,285 units.
Those cities have been the focus of concerns about an unsustainable surge in prices and new home construction, and CREA said the September sales decline may be linked to a shortage of homes on the market. Vancouver’s new listings fell by 4.9 percent on the month and sales climbed to 72.8 percent of new properties, up from 56.9 percent a year earlier.
Vancouver and Toronto “rank among the tightest urban housing markets in the country due to a shortage of inventory and supply of land on which to build,” CREA chief economist Gregory Klump said in a report.
Toronto’s new listings fell by 1.3 percent on the month in September. Sales as a percentage of new listings was 61.4 percent, above the national average of 56.8 percent.
The nationwide September sales decline shrank the gain from the same month a year earlier to 0.7 percent. The average sales price increased over that period by 6.1 percent to C$433,639 ($355,504), CREA said.