Growth in Canadian home sales slows amid record-tight supply

Canadian home sales slowed in September as supply tightened, suggesting the nation’s red-hot housing market over the summer months is cooling.

National home sales rose 0.9% from a month earlier, the smallest gain since April, the Canadian Real Estate Association reported Thursday. At the same time, inventory levels dropped 10.2% and the sales to new listings ratio, a measure of market tightness, hit the highest level in almost two decades.

Canada’s housing market has been a bright spot in the country’s economic recovery from covid-19 shutdowns. Property sales and prices have reached historical highs in the aftermath of lockdowns as tight inventory levels combined with low interest rates buoy real estate values. Benchmark prices are up 5.3% since June, near the fastest pace on record for a three-month period.

“Canadian home sales and prices set records once again in September amid record-tight overall market conditions, as they did in July

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