National home sales fell by 14.5% from last December to January to the lowest level in three years.
The Canadian Real Estate Association says the Toronto area market is responsible with its seasonally adjusted sales down 26.6% between December and January, compared to 11.7% in the rest of the country.
The decrease in sales comes after they climbed to a record monthly high in December, just before stricter mortgage rules were introduced New Year’s Day and the interest rate was hiked.
The number of new listings plunged 21.6% nationally from December to January, compared to 39.3% in the Toronto-area.
Although the national average home price rose 2.3% year-over-year last month, Toronto-area prices fell 4.1%.
CREA feels the uncertainty which has potential home buyers staying on the sidelines will continue unless the government addresses the shortage of supply.