Canadian homebuyers "battened down the hatches" in October, with the number of properties sold through the Multiple Listing Service falling 14 per cent from September — the biggest drop since June 1994, the Canadian Real Estate Association said Friday.
And the number of units sold in October totalled just 32,048 — the lowest level since July 2002, CREA said.
"Many homebuyers across Canada battened down the hatches in October as they were concerned with dire headlines about stock market volatility and a global economic downturn," CREA chief economist Gregory Klump said in a release.
"Elimination of mortgage-default insurance availability for purchases with less than a five per cent down payment and for amortizations beyond 35 years also likely played a lesser role in the decline in sales activity."
Sales activity declined in Toronto, Montreal, Vancouver, Calgary and Edmonton while Newfoundland and Labrador continued to see peak sales activity.
The average price of residential properties sold through MLS in October was $281,133 — a 9.9 per cent decline in year-over-year comparisons.
Klump said he expects the number of new listings to drop, stabilizing the market.
On Monday, Statistics Canada reported contractors' selling prices for new homes increased 0.1 per cent in September from the previous month.
The Canada Mortgage and Housing Corp. also reported the number of housing starts in October fell to 211,800 in October from 218,600 in September.
