Home Sales Drop in Toronto, Vancouver Because Not Enough Property on Market: CREA

The biggest problem in Canada's hottest housing markets today seems to be a lack of supply. Buyers are having difficulty finding something available to buy.

CREA, The Canadian Real Estate Association explains why there is a shortage of listings in Toronto and Vancouver and why there is a 2.1 per cent seasonally adjusted decline in existing home sales from the month August to September in Toronto.

“Although national sales activity was not as strong in September as it was earlier this year, a lack of supply in some parts of the country is likely keeping a lid on transactions,” said Gregory Klump, chief economist with CREA. “The greater Toronto area and Greater Vancouver made sizeable contributions to the monthly decline in national sales activity. They also rank among the tightest urban housing markets in the country due to a shortage of inventory and supply of land on which to build, which is why prices there continue to grow strongly.”

CREA also stated September sales decreased from August on a seasonally adjusted basis in more than half of the markets it surveyed but prices continue to price.

Reference: Business Financial Post

http://business.financialpost.com/…/home-sales-fall-in-toro…