MNI: Toronto Oct Home Sales -49% YOY, Prices -1.3%

Home sales in Toronto fell 49% in October from a year earlier and new listings fell to the lowest since 2010 as higher mortgage rates pinched buyers.

Benchmark prices slipped 1.3% from a year ago, the Toronto Real Estate Board said Thursday and the average price held around CAD1.1 million. The Bank of Canada raised its overnight rate 50bps to 3.75% Oct. 26, taking the total this year to 350bps. "The Bank of Canada’s most recent messaging suggests that they are reaching the end of their tightening cycle... fixed mortgage rates may trend lower moving forward, which would help affordability," TREB Chief Market Analyst Jason Mercer said in a report.

Heavily indebted consumers are one reason the BOC may not hike as much as the Fed, a former adviser has told MNI. (See: BOC Nearly Done Hiking On Stall Risk-Ex Adviser)