Canada Existing Home Sales Fall in June

Canada existing home sales fell 6.7% in June after the 6.2% m/m drop in seasonally adjusted May sales, according to the Canadian Real Estate Association. The pull-back is the largest monthly decline since June of 2010. Also, sales are down 14.1% compared to the record level seen in March. The decline in June sales was driven by a contraction in Greater Toronto Area (GTA) sales. Total sales volumes (not seasonally adjusted) were 11.4% below the level seen in June of 2016. The MLS home price index was 15.8% higher on a y/y basis, while the national average price was only 0.4% higher on the same basis.

Listing declined 1.5% in June, led by a big drop in GTA compared to the levels in April and May. This report reflects the impact of the measures made by Ontario to cool housing, which took effect in late April. Activity will face another hurdle in July/August due to higher mortgage rates.

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